In early July 2026, the domestic DTY (150D/48F semi-dull textured) market showed notable price weakness. Public data shows Rongsheng Petrochemical quoted 9,150 RMB/ton in Hangzhou, while Zhejiang Juxing Chemical Fiber quoted 9,000 RMB/ton in Shaoxing. The 150 RMB/ton spread between these two nearby locations signals diverging inventory pressures and sales strategies among producers.
The Dual Game of Capacity and Cost
The DTY price decline primarily stems from persistent overcapacity in upstream PTA. In H1 2026, domestic PTA capacity utilization hovered around 78%, but new plant startups added supply pressure, directly squeezing POY margins. As DTY is a draw-textured product of POY, it should track raw material costs, but weak buying from downstream weaving mills prevents cost-side savings from translating into profit.
The price gap between Rongsheng and Zhejiang Juxing also reflects different cost structures. Rongsheng, as an integrated refiner, has high PTA self-sufficiency, giving it greater pricing flexibility. Zhejiang Juxing, a specialized chemical fiber producer, relies more on external PTA procurement and is more reactive to price moves. This structural disparity will widen profitability gaps among firms in coming months.
Downstream Transmission: Weaving Mills Turn Cautious
DTY is mainly used in water-jet and warp knitting looms for fabrics like faux silk, linings, and bag fabrics. Since Q2 2026, operating rates in major weaving clusters like Shengze, Changxing, and Xiuzhou have dropped from 85% to around 75%, as terminal orders slowed and foreign orders shifted. Mills have adopted a "buy-as-needed" policy, avoiding large raw material inventories.
This behavior directly pressures DTY plants. Inventory turnover days have extended from the normal 15 days to over 25 days. To ease cash flow, some small-to-mid-sized texturizing mills have cut prices, while leading firms try to stabilize the market. Industry data shows DTY cash profit has shrunk from 400 RMB/ton in May to about 200 RMB/ton currently, with non-integrated firms nearing breakeven.
Regional Industrial Belt Differentiation
Shaoxing and Hangzhou are the most concentrated DTY production hubs, making their price movements a bellwether. Shaoxing is dominated by SMEs with flexible pricing but lower risk tolerance; Hangzhou has large players like Rongsheng and Hengyi with stronger pricing power. The current 150 RMB/ton spread reflects a clash of business models: big firms leverage scale for market share, while smaller ones cut prices to maintain cash flow.
Similar divergence exists in secondary markets like Nantong (home textile-grade DTY, more stable) and Changle (warp-knit DTY, hit harder by export weakness). These regional price gaps create arbitrage opportunities but also complicate supply chain management.
Actionable Recommendations
For Buyers - Monitor PTA and MEG futures: if raw materials continue to fall, DTY could drop another 200-300 RMB/ton, so consider delaying large orders. - Leverage regional price spreads: SME quotes in Shaoxing are lower but delivery less reliable; large-firm quotes in Hangzhou are higher but supply stable. Split orders into a "base volume" (locked with large firms) and a "flexible volume" (filled opportunistically in low-price regions). - For special specifications (e.g., 75D/36F or interlaced yarns), negotiate quarterly agreements to lock in current low prices.
For Exporters - Current DTY FOB export prices are around 1,100-1,150 USD/ton, offering a ~50 USD/ton advantage over Southeast Asian competitors. Prioritize markets in South Asia (India, Bangladesh) where weaving capacity is expanding and demand for semi-dull DTY is steady. - Hedge currency risk: if the RMB depreciates against the USD, export competitiveness will improve, but use forward contracts to lock in margins. - Include a price validity period of 5 days or less in quotes to avoid losses from rapid domestic price swings.
In the short term, the DTY market will remain in a "weak cost, flat demand, high inventory" environment. The Q3 end-of-summer fabric stocking season may bring some restocking demand, but given overcapacity, any price rebound will be limited. Companies should shift from a "hold for price rise" mindset to refined inventory management and regional arbitrage strategies.