Henan Kaijie's Polyester Staple Fiber Quote Plunges, Signaling Shift in Supply-Demand Dynamics

On July 4, Henan Kaijie Water Treatment quoted polyester staple fiber at 15,500 yuan/ton, while the industry benchmark from Shengyishe was only 7,311.29 yuan/ton. This near-double price gap has sent shockwaves through the calm chemical fiber market. Is it a premium for special specifications, or a signal of regional inventory crunch? The Textile Circle editorial team believes this anomaly reflects deep structural contradictions in the polyester staple fiber industry.

Background

The quoted fiber has a diameter of 30mm, a special specification not commonly traded. Typically, special fibers command a 20%-30% premium due to customization and small batches. But this premium exceeds 110%, far beyond norms. Historical data shows Henan Kaijie also quoted 15,500 yuan/ton on July 2, while the benchmark rose slightly from 7,280.83 to 7,311.29 yuan/ton, indicating a sustained anomaly. The seven-day validity suggests a lack of long-term confidence. Meanwhile, Youcai Resources reported a 72.80%-122.17% net profit increase, showing strong downstream differentiation but squeezed margins for standard fibers.

Industry Impact

The price anomaly affects upstream and downstream players. Upstream PTA and ethylene glycol suppliers may shift capacity to differentiated products, risking general-purpose supply tightness. Downstream spinning and nonwoven companies face cost divergence: those using standard specs enjoy stable prices, while special fiber buyers face weaker bargaining power. Regionally, Henan, a new textile growth hub, may see downstream firms shift procurement to Zhejiang or Jiangsu, or seek imports. Imported polyester staple fiber is around 9,000-10,000 yuan/ton, far below Henan Kaijie's quote, offering arbitrage opportunities for exporters.

Practical Advice

For Buyers - Prioritize long-term contracts based on industry benchmarks for standard specs to avoid production disruptions. - For special specs, solicit quotes from at least three suppliers and request detailed specifications and quality reports from Henan Kaijie to verify the premium. - Monitor Henan Kaijie's quote after July 11; if high, consider sourcing from Zhejiang/Jiangsu or using futures to hedge price risk.

For Exporters - Increase polyester staple fiber imports, leveraging current price gaps with Southeast Asian and Middle Eastern low-cost sources. - Clearly state raw material cost benchmarks (e.g., Shengyishe benchmark) in export quotes to avoid order losses from domestic anomalies. - Track capacity expansion of differentiated product companies like Youcai Resources; high profits may attract investment to special fibers, leveling premiums long-term.