The quotation for polyester draw texturized yarn (DTY) 150D/48F showed significant divergence in early July 2026. Rongsheng Petrochemical quoted 9,150 RMB/ton, while Zhejiang Juxing Chemical Fiber offered a lower price of 9,000 RMB/ton. The 150 RMB/ton spread between the two is unusual in normal market conditions, reflecting a subtle game between upstream and downstream segments of the supply chain.
The Inventory Logic Behind Quotation Divergence
Both companies are located in Zhejiang Province, yet they offer substantially different prices. The core reason lies in their respective inventory pressures and customer structures. Rongsheng, as a large integrated refining and chemical enterprise, has a high degree of self-sufficiency in raw materials such as PTA, giving it stronger cost control and allowing it to maintain firmer pricing. Juxing, as a medium-sized specialized filament producer, is more sensitive to changes in market orders. Against a backdrop of weak end-user demand, it has taken the lead in cutting prices to secure cash flow.
According to publicly available industry data, the operating rate of weaving mills in the Jiangsu-Zhejiang region has dropped from a peak of 75% to around 68% since the second quarter of 2026. Grey fabric inventory days have generally exceeded 30 days, with some small and medium-sized mills reaching 45 days. This means downstream demand for polyester DTY is weakening, with buyers preferring to purchase on a need-to-order basis rather than building inventory.
Raw Material Cost Pass-Through and Intensified Regional Competition
The main raw materials for polyester DTY are PTA (purified terephthalic acid) and MEG (monoethylene glycol). In June 2026, the average spot price of PTA fell by approximately 2.3% from May, while MEG dropped even more, by 3.8%. The weakening support from raw material costs has provided room for polyester DTY price cuts. However, the more critical factor is the intensified capacity competition within the region.
Zhejiang Province is the most concentrated area for polyester filament production in China. Cities such as Shaoxing, Hangzhou, and Jiaxing alone account for about 40% of the national polyester DTY capacity. When the market enters a slack season, producers in the same region often resort to price wars to maintain operating rates and compete for limited orders. Juxing's recent quotation is essentially an aggressive move to capture market share.
- For buyers, intensified regional competition means greater bargaining power, but they should also be wary of potential quality risks associated with low prices.
- For producers, simply cutting prices is not a long-term solution. Differentiated products (such as cationic dyeable DTY or high-elasticity yarns) offer much higher profit margins than conventional 150D varieties.
Impact of Export Expectations on Prices
Despite weak domestic demand, direct exports of polyester DTY performed reasonably well in the first half of 2026. According to publicly available data from China Customs, cumulative exports of polyester filament from January to May increased by about 6.5% year-on-year. Exports to Southeast Asian countries such as Vietnam, Bangladesh, and Indonesia showed the most significant growth. These countries are in a phase of textile capacity expansion, making them highly dependent on Chinese chemical fiber raw materials.
However, profit margins on export orders are being squeezed. The RMB exchange rate remained relatively stable in the second quarter of 2026, but ocean freight rates fluctuated sharply, with Southeast Asia route rates rising 12% month-on-month in June. This has forced some foreign trade companies to lower their procurement costs to maintain overall profitability, which in turn has exerted downward pressure on domestic DTY prices.
Practical Recommendations
For Buyers - The current market offers clear buyer bargaining advantages. It is recommended that buyers solicit quotations from at least three suppliers and compare prices, focusing on the price spread for conventional 150D/48F varieties. - For long-term stable orders, consider signing monthly floating price contracts with suppliers, using the PTA and MEG price indices as pricing benchmarks to lock in cost advantages. - Be cautious of potential quality issues in low-price competition. Request physical property test reports for each batch of products, focusing on indicators such as breaking strength and boiling water shrinkage rate.
For Foreign Trade Companies - When quoting for export orders, incorporate ocean freight fluctuations into cost calculations. Adopt a "FOB + floating freight" quotation model to prevent profit erosion due to rising shipping costs. - Monitor changes in operating rates of weaving mills in Southeast Asia. If local mill operating rates consistently fall below 60%, consider controlling export volumes to avoid inventory buildup. - Attempt to develop differentiated DTY products for export, such as superfine denier or profiled cross-section yarns. These products have higher added value and face less intense price competition.
Overall, the divergence in polyester DTY quotations in early July 2026 is a normal phenomenon during a period of industrial adjustment. In the short term, prices for conventional varieties still have room to fall, but the decline will be limited by production costs. For companies across the supply chain, refined cost management and differentiated product development are the fundamental strategies to cope with price volatility.