9,000 RMB/ton vs 9,150 RMB/ton—a 150 RMB gap emerged in early July 2026 for polyester DTY (150D/48F semi-dull low-elastic yarn) between Shaoxing and Hangzhou. This seemingly minor spread, against a backdrop of high inventory and concentrated new capacity release, may signal the start of a new price adjustment cycle.
Capacity Release and Regional Spread
Rongsheng Petrochemical's quote of 9,150 RMB/ton in Xiaoshan, Hangzhou, stands in subtle contrast to its cost advantage as a domestic PTA-polyester integrated giant. Meanwhile, Shaoxing Juxing's 9,000 RMB/ton more directly reflects the sales pressure faced by small and medium polyester enterprises in the Jiangsu-Zhejiang region. The core difference lies not in quality—both are melt-spun AA-grade—but in each company's tolerance for inventory turnover.
Industry data shows that in the first half of 2026, China added approximately 1.8 million tons of new polyester filament capacity, with DTY accounting for about 35%. These new lines entered stable production by the end of Q2, making early July a natural window for supply release. Shaoxing, home to China Textile City, has weavers with short raw material procurement radii and high price sensitivity, so local suppliers cutting prices to grab orders aligns with industrial logic.
Downstream Demand Transmission Blocked
The DTY price easing is not an isolated event. Upstream PTA experienced a modest rebound in late June but failed to pass through to the polyester filament sector, meaning polyester plants' processing margins are being squeezed. For a fully integrated player like Rongsheng, self-supplied PTA can partially offset profit loss, but for independent polyester mills like Shaoxing Juxing that purchase PTA externally, the 9,000 RMB/ton selling price is approaching the breakeven line.
Downstream weaving conditions are equally grim. Operating rates in major clusters like Shengze and Changxing fell to about 68% by end-June, down 4 percentage points month-on-month. Gray fabric inventory buildup has led weavers to adopt a 'hand-to-mouth' raw material buying strategy, refusing to build stockpiles. This wait-and-see sentiment directly dampens DTY demand elasticity.
Impact on Buyers and Foreign Trade Firms
The price divergence creates bargaining space for buyers. However, behind different quotes may lurk differences in payment terms, delivery speed, and return policies. A 150 RMB/ton gap can yield significant savings on a single order, but sacrificing supply stability for a low price is counterproductive.
For foreign trade firms, current DTY prices are at a year-to-date low, but RMB exchange rate volatility and overseas apparel brands' destocking cycles remain unresolved, keeping export profit margins under pressure. It is recommended to use forward forex contracts to lock in exchange rates and monitor growing demand for differentiated DTY varieties in Southeast Asian markets.