Polyester POY prices have shown signs of stabilization around the 8,200 CNY/ton mark after earlier adjustments. On July 3, industry public quotes showed Rongsheng Petrochemical's POY (150D/48F semi-dull premium grade) at 8,200 CNY/ton ex-factory, while Zhejiang Juxing Chemical Fiber quoted the same specification at 8,050 CNY/ton. The narrow spread of only 150 CNY/ton reflects a delicate balance between supply and demand in the current polyester filament market.
Price Level and Cost Support
The 8,200 CNY/ton level sits at the midpoint of the three-month price range for POY. On the cost side, PTA and MEG prices have been trading in a narrow range recently, with polyester chip cash flows hovering near breakeven, suggesting limited room for further POY declines. As an industry leader, Rongsheng's 8,200 CNY/ton quote serves as a bellwether—if feedstock costs don't collapse sharply, this level may act as a short-term anchor.
Juxing's 8,050 CNY/ton quote reflects the real pressure on small-to-medium polyester producers: in a weak demand environment, some factories are willing to sell slightly below the leader to maintain cash flow. What does this price structure mean for downstream weaving mills? The procurement window may be opening.
Regional Industrial Cluster Effects
The quoted locations are concentrated in Zhejiang Province—Hangzhou (Rongsheng) and Shaoxing (Juxing)—both at the heart of the Xiaoshan-Shaoxing textile industrial cluster. Shaoxing, as one of China's largest chemical fiber fabric production bases, directly impacts the raw material cost calculations for thousands of surrounding weaving mills.
When POY prices oscillate in the 8,050-8,200 CNY/ton range, for a medium-sized weaving mill consuming over 1,000 tons annually, a 150 CNY/ton spread translates to over 150,000 CNY in monthly procurement cost differences. This explains the notable increase in inquiry frequency from mills in Shaoxing and Xiaoshan recently—they are waiting for a clear bottom signal.
Downstream Demand Signals
As the precursor to draw-textured yarn (DTY), POY prices directly reflect the health of end-use textile and apparel orders. The current 8,200 CNY/ton level corresponds to a moderate state where downstream loom utilization rates hover around 70%.
- If end-user orders remain weak, POY could test the 7,800-8,000 CNY/ton range
- If autumn/winter fabric restocking begins, 8,200 CNY/ton could become the starting point for a new uptrend
Historically, July is a watershed for polyester prices: the first half follows seasonal sluggishness, while the second half often sees prices rise as fall/winter fabric orders gradually come in. Whether this pattern repeats this year depends on the replenishment pace of end-brand customers.