Polyester DTY prices showed notable weakness in early July 2026, with the 150D/48F semi-dull low-elastic variety quoted at 9,150 yuan/ton by Rongsheng Petrochemical and 9,000 yuan/ton by Zhejiang Juxing Chemical Fiber, the latter falling below the key psychological level of 9,000 yuan. This shift is not an isolated event but a signal of intensifying tug-of-war along the polyester supply chain.
Supply-Demand Dynamics Behind Price Correction
The 150 yuan/ton gap between the two quotes reflects divergent inventory and sales strategies among companies of different scales. Rongsheng, as an industry leader, maintained a relatively firm stance, while Zhejiang Juxing moved closer to actual transaction prices. Such a spread has been rare in the past six months, indicating weak purchasing appetite from downstream weaving mills and mounting destocking pressure being passed to chemical fiber producers.
The 150D specification is the most mainstream DTY product, widely used in apparel fabrics and home textiles. Its price drop below 9,000 yuan/ton is both a cost relief for weaving clusters in Shaoxing and Hangzhou and a sign of shrinking end-user orders. Industry data show that since Q2 2026, the operating rate of water-jet looms in Jiangsu and Zhejiang has fallen from 85% to around 78%, while grey fabric inventory days have risen to over 35.
Chain Reaction of Inventory Accumulation
The core contradiction in the polyester chain is that upstream PTA and MEG prices remain elevated due to crude oil volatility, while downstream weaving and dyeing segments are cutting production because of insufficient orders. DTY, as an intermediate product, faces both raw material cost pressure and weak terminal demand. The price cuts by Rongsheng and Zhejiang Juxing essentially reflect a redistribution of profits along the chain.
In Shaoxing, one of China's largest chemical fiber trading hubs, traders have generally adopted a "price-for-volume" strategy. Zhejiang Juxing's quote of 9,000 yuan/ton may prompt other small and medium-sized fiber mills to follow suit. If this trend spreads, the overall price floor for polyester filament yarn could shift downward, influencing the market for polyester chips and bottle-grade PET in the second half of 2026.
Divergent Responses in Regional Industrial Clusters
DTY producers in Hangzhou and Shaoxing have adopted different coping strategies. Rongsheng leverages its scale and integrated chain to partially absorb cost pressures, while smaller players like Zhejiang Juxing are more exposed to spot market volatility. This divergence is particularly evident in Shaoxing's Binhai Industrial Zone and Hangzhou's Xiaoshan chemical fiber base.
Historically, July and August are the traditional low season for textiles, but this year the effect arrived earlier due to shrinking export orders. China Customs data show that textile and apparel export growth slowed to 3.2% in the first half of 2026, far below last year's 8.7%. Weaker restocking demand from Europe and Southeast Asia has diverted some export-bound DTY inventory to the domestic market, exacerbating oversupply.