Polyester Filament Yarn Prices Soften: Rongsheng Petrochemical Cuts by 100-200 Yuan/Ton, Pressuring the Polyester Sector

On July 3, Rongsheng Petrochemical (including Shengyuan) announced a local price cut for polyester FDY products, ranging from 100 to 200 yuan per ton. This move quickly triggered a chain reaction in the polyester value chain, with the spot negotiation center shifting downward and market sentiment turning cautious.

Background

The price adjustment covers multiple specifications of polyester FDY. Specifically, semi-dull FDY 30D/24F is now quoted at 10,950 yuan/ton, 75D/36F at 8,500, 150D/96F at 8,300, 200D/48F at 8,450, 200D/96F at 8,400, and 300D/96F at 8,400. This is not an isolated event but a concentrated reflection of the polyester industry's struggle between costs and demand.

According to industry public data, upstream raw materials PTA and MEG have been fluctuating recently, failing to provide stable cost support for polyester filament. Meanwhile, downstream weaving mills, facing insufficient end-user orders, have adopted a wait-and-see attitude toward raw material procurement, slowing inventory digestion. Rongsheng's price cut is essentially a proactive adjustment to the current supply-demand imbalance.

Industry Impact

As a core variety in the polyester sector, price changes in polyester FDY serve as a bellwether. Rongsheng's adjustment has created a generally bearish impact on FDY spot prices, with a bearish-bullish score of -1, indicating limited short-term price rebound potential. More notably, this signal has spread to the polyester staple fiber market, whose score has also dropped to -0.5, reflecting a weak overall sentiment in the polyester sector.

For downstream buyers, a price cut seems beneficial but carries hidden risks. On one hand, lower prices may encourage some weaving mills to restock at lower levels; on the other hand, if end-user demand does not recover simultaneously, inventory pressure may shift from raw materials to finished products. Additionally, related futures contracts have come under pressure, with clear signs of capital outflow from the polyester sector in the short term.

From a production base perspective, the Jiangsu-Zhejiang region (e.g., Xiaoshan, Shaoxing, Shengze) is the main production and sales area for polyester filament. As a leading enterprise, Rongsheng's pricing strategy is often used as a reference by smaller manufacturers. It is expected that in the next one to two weeks, other polyester plants may follow suit with price adjustments, leading the industry into a price-discovery phase.

Practical Recommendations

For Buyers - Closely monitor PTA and MEG price trends; if raw material costs decline further, polyester filament may have additional room for price cuts. Consider phased purchasing to manage risk. - Negotiate short-term floating price agreements with suppliers to avoid locking in high prices, especially given the current weak market sentiment.

For Exporters - When quoting for export orders, build in a 3-5% price fluctuation buffer to prevent margin compression from continued domestic raw material price declines. - Monitor polyester demand recovery in overseas markets (e.g., Southeast Asia, South Asia); if external demand picks up, leverage the current low domestic price window to build inventory.