Polyester Filament Price Softens: Industry Signals from Rongsheng Petrochemical's Price Cut

Weak terminal demand is transmitting upstream. In early July 2026, Rongsheng Petrochemical (including Shengyuan), a core supplier of polyester filament yarn in China, lowered its polyester DTY prices by 100-200 yuan per ton across multiple specifications. Although this is a partial adjustment, its signal value is significant against the backdrop of a weak supply-demand balance.

Price Adjustment Details and Market Reaction

According to public quotes, the adjustment covers several DTY specifications. For instance, 75/36 low-stretch yarn is priced at 10,050 yuan/ton, 100/96 light-net at 9,900 yuan/ton, 120D/192F micro-net at 9,550 yuan/ton, 150/48 low-stretch at 9,150 yuan/ton, 150/96 low-stretch at 9,100 yuan/ton, 300/96 low-stretch at 8,900 yuan/ton, 300/96 light-net at 8,900 yuan/ton, and 300/96 heavy-net at 9,250 yuan/ton. The overall reduction is a modest 100-200 yuan/ton, not a sharp fluctuation.

Notably, this price cut is not an isolated event. During the same period, the main polyester staple fiber contract (2609) on the Zhengzhou Commodity Exchange fell by 136 yuan/ton, with a significant increase in short positions. The bearish sentiment in the futures market resonates with the spot price cuts, creating a contagion effect across the entire polyester sector. Industry scoring systems show -1 (generally bearish) for both polyester DTY and polyester filament, and -0.5 (slightly bearish) for polyester staple fiber.

Industry Impact: Imbalance is the Root Cause

As a core supplier, Rongsheng's pricing strategy is often seen as a bellwether. This price cut directly reflects weak downstream demand. Textile mills are operating at low utilization rates with insufficient new orders, leading to procurement limited to immediate needs and a reluctance to build inventories. This 'buy on rising, not on falling' mentality exacerbates spot sales pressure during a price downtrend.

From an inventory perspective, upstream polyester plants have seen stock levels rise to multi-year highs. For polyester DTY, major plants typically hold over 20 days of inventory, some approaching 30 days. High inventory combined with weak demand forces suppliers to cut prices to stimulate sales. However, whether price cuts can effectively reduce inventory depends on a recovery in end-consumer demand.

Furthermore, cost support is weakening. Prices of PX and PTA have been volatile and trending lower, lowering the raw material cost base for polyester filament and providing room for price cuts. However, this also means that unless crude oil prices rebound significantly, the cost transmission mechanism in the polyester chain will continue to suppress product prices.

Practical Recommendations

For Buyers - Monitor inventory-price dynamics: With polyester filament prices in a downtrend, maintain a low-inventory strategy and purchase on a need-only basis to avoid losses from further price declines. - Use futures for hedging: For buyers with forward orders, consider buying hedges in the futures market to lock in raw material costs and mitigate spot price volatility. - Diversify supplier base: While Rongsheng is a core supplier, maintain communication with multiple suppliers to obtain more quotes and gain leverage in price negotiations.

For Mills (Weaving/Texturing) - Optimize product mix: With thin margins on standard products, increase production of differentiated, higher-value items such as functional fabrics or fine-denier yarns to improve pricing power. - Control utilization and inventory: Flexibly adjust operating rates based on actual orders to avoid finished goods overstock. Negotiate more flexible payment and delivery terms with upstream suppliers. - Monitor policy and seasonal demand: The second half of the year is typically the traditional peak season for textiles. Closely watch the start of orders for the 'Golden September and Silver October' period and plan raw material procurement accordingly.