On July 3, 2026, Kaishi Group set its polyester DTY (150D/48F melt-spun AA grade) price at 9,300 yuan/ton, 18.75 yuan lower than the previous day's industry benchmark of 9,318.75 yuan/ton. This seemingly minor gap, in a highly commoditized chemical fiber market, often signals the start of broader price negotiations along the chain.
Background
Polyester DTY is a core raw material for weaving, especially the 150D/48F specification widely used in shuttle and circular knitting. As one of China's major polyester filament producers, Kaishi's price adjustments carry psychological weight in East and South China markets. On the same day, Juxing Chemical Fiber quoted 9,000 yuan/ton for a similar product, creating a spread of 300 yuan. Such dispersion among producers is uncommon in normal market conditions.
From a timeline perspective, the industry benchmark remained at 9,318.75 yuan/ton from July 1 to 3, but actual transaction prices diverged: large mills maintained relatively firm quotes due to scale advantages and long-term contracts, while smaller mills offered steeper discounts to secure orders. This indicates the market is not monolithic—fluctuations in upstream PTA and MEG prices, changes in downstream weaving capacity utilization, and inventory level differences are being absorbed differently by various producers.
Industry Impact
The transmission mechanism of price divergence is clear. For downstream weaving mills, procurement decisions become more complex: buying at the benchmark may overpay, but chasing low prices risks supply stability. When a major player like Kaishi adjusts prices, it often sets a new anchor—if 9,300 yuan/ton becomes the new reference, others may be forced to follow, pulling down the overall price level.
For chemical fiber producers, this divergence reveals competitive pressure in an overcapacity environment. In the first half of 2026, about 1.2 million tons of new polyester filament capacity came online, mainly from top producers, while downstream demand growth slowed to around 3%. Under supply-demand imbalance, companies are resorting to pricing strategies to defend market share. Kaishi's price cut, though modest, carries a clear signal: sacrificing per-ton profit to retain customers and capacity utilization.
From a regional perspective, traders in concentrated industrial zones like Xiaoshan, Shaoxing, and Shengze have begun adjusting inventory strategies. Some have suspended bulk purchases, waiting for price clarity; others are arbitraging by sourcing from different producers. This short-term behavior further amplifies price volatility.
Practical Advice
For Buyers - Monitor weekly price changes from top producers (Kaishi, Tongkun, Xinfengming) and set up a price alert system; trigger renegotiation when spreads exceed 0.5%. - Leverage the current price divergence to compare at least three suppliers of different scales, but evaluate delivery lead times and quality consistency. - If inventory covers two weeks or more, consider waiting until mid-July for the industry benchmark trend to clear before placing orders.
For Exporters - Factor in downside risk for raw material prices when quoting export orders; consider floating price clauses or shorten quote validity to three days. - Monitor polyester DTY import price spreads in Southeast Asian markets (e.g., Vietnam, Bangladesh); if domestic prices drop over 5%, increase export competitiveness. - Negotiate price lock agreements with domestic suppliers to lock in procurement costs near the current 9,300 yuan/ton level, hedging against potential rebounds.
In summary, Kaishi's pricing move should not be viewed in isolation. It is more like a snapshot of the Q3 chemical fiber market: overcapacity, weak demand, and company divergence. For the entire textile chain, the key variables ahead are whether downstream weaving utilization rates can recover on autumn/winter orders and whether upstream raw material costs continue to soften. Procurement decision windows often hide within these subtle price signals.