In early July 2026, the domestic polyester DTY (150D/48F, semi-dull low-elastic yarn) market exhibited an unusual price divergence. Two major Zhejiang-based suppliers—Rongsheng Petrochemical and Zhejiang Juxing Chemical Fiber—quoted 9,150 RMB/ton and 9,000 RMB/ton respectively, a spread of 150 RMB. In a standardized product category where prices typically converge, this signal warrants scrutiny.
The Logic of Regional Industrial Clusters
The price gap is not accidental. Rongsheng, headquartered in Hangzhou, benefits from an integrated refining-petrochemical complex with high self-sufficiency in raw materials PTA and MEG, giving it a cost advantage. In contrast, Zhejiang Juxing, located in Shaoxing—a core weaving cluster—sets prices more responsive to immediate market demand. The divergence reflects a collision between “cost-driven” and “market-driven” pricing strategies.
From a regional perspective, the Shaoxing-Xiaoshan area is a hub for polyester filament and weaving. Since 2025, local weaving loom utilization has hovered between 65%-70%, below historical averages. High grey fabric inventories have prompted downstream mills to adopt a “buy-as-needed” approach, dampening bulk purchasing. This explains Juxing’s more aggressive pricing, closer to market bottoms.
Supply-Demand Balance: High Operating Rates vs. Weak Orders
The industry faces a classic dilemma: upstream polyester plants maintain high operating rates driven by margins, but end-use textile and apparel orders have not materialized as expected. National Bureau of Statistics data shows that fixed asset investment in the textile sector grew only 2.1% year-on-year in the first five months of 2026, far below the 2024 pace, indicating cooling expansion enthusiasm.
As an intermediate product, polyester DTY is squeezed by both upstream and downstream pressures. PTA prices peaked and retreated in Q2, currently around 5,800 RMB/ton, weakening cost support. Downstream weaving margins have been compressed to razor-thin levels, leaving little room to absorb raw material price hikes. This “pincer attack” prevents DTY prices from forming a clear trend, oscillating in a narrow range.
For exporters, anti-dumping investigations into Chinese polyester filament by the EU and US are ongoing, with some orders already shifted to Vietnam and India. Customs data shows polyester filament exports fell 3.8% year-on-year in Jan-May 2026, with EU-bound shipments dropping 7.2%. Weakened exports intensify domestic supply pressure.
Inventory Cycle Shifts
Inventory cycles show DTY social inventories at moderately high levels. Traders report that since late June, some polyester plants have adopted “margin-sacrificing destocking” through small price cuts. However, downstream weavers, anticipating production cuts due to summer heat-related power rationing in July-August, are in no rush to restock.
This stalemate—factories wanting to sell, buyers reluctant to buy—has made prices highly inelastic. Even cost fluctuations struggle to pass through. Industry data shows that in the last week of June, major DTY plants in Jiangsu-Zhejiang achieved only 80%-90% of their sales-to-production ratio, failing to reach equilibrium.
Notably, the 150D specification is primarily used in apparel fabrics, not home textiles or industrial textiles. Thus, current price signals reflect the health of the garment supply chain rather than the entire textile industry.