The price of polyester staple fiber has dropped to 7,255 yuan per ton in early July, a figure that reflects the price volatility the chemical fiber industry has experienced over the past year. From a low of 6,267 yuan to a high of 8,426 yuan, and now settling in the mid-range, the market seems to be searching for a new equilibrium. For participants in the textile supply chain, what does this current price level mean? Is it an opportunity to buy the dip, or a pause before further declines?
Annual Price Review: From Trough to Peak and Back to Mid-Range
According to publicly available data from China Customs and industry sources, the price of polyester staple fiber has exhibited a typical 'V-shaped reversal' followed by a pullback over the past year. Between July 6, 2025, and July 6, 2026, the lowest price of 6,267 yuan per ton occurred in late 2025, while the highest price of 8,426 yuan per ton was recorded in the first quarter of 2026. The current price of 7,255 yuan is 1,170 yuan below the peak and 988 yuan above the trough, placing it near the annual median of 7,346 yuan.
This mid-range position is not coincidental. In the first quarter, prices were pushed to highs by rising crude oil costs and concentrated downstream restocking. Subsequently, in the second quarter, prices began to fall as new production capacity came online and growth in textile end-use orders slowed. The early July price of 7,255 yuan represents a 2.19% decline from the start of the month, indicating that downward pressure is still being released.
Industry Impact: Cost Transmission and Procurement Psychology
Polyester staple fiber is a core raw material for cotton spinning, nonwovens, and filling materials. The current price decline directly reduces raw material costs for downstream spinners and nonwoven fabric manufacturers. For textile companies producing polyester-cotton blends, each ton of raw material saves approximately 160 yuan, improving gross margins by 1-2 percentage points.
However, the ongoing price decline has also fostered a wait-and-see attitude among buyers. Some small and medium-sized weaving enterprises tend to 'buy on the rise, not on the fall,' maintaining only essential purchases until prices stabilize. This sentiment, in turn, exacerbates inventory pressure on upstream factories. Data shows that the average inventory turnover days in the chemical fiber industry rose to 28 days at the end of the second quarter, up from 22 days in the first quarter, making destocking a key task in the current phase.
From a regional perspective, major consumption areas for polyester staple fiber, such as Shengze, Changxing, and Xiaoshan, have recently seen transactions dominated by small and scattered orders, with bulk orders accounting for less than 30% of total volume. This indicates that end-user demand has not experienced explosive growth, and the market is still awaiting clearer signals.
Supply-Demand Dynamics: New Capacity Release and Export Resilience
On the supply side, the first half of 2026 saw approximately 800,000 tons of new polyester staple fiber capacity come online in China, mainly from leading companies in Fujian and Jiangsu provinces. The release of new capacity, combined with slowing demand growth, has led to a continued loose supply-demand balance. Industry public data predicts that annual production will grow by 5-7%, while consumption growth is expected to be around 3-4%, widening the supply-demand gap.
On the export front, there is some resilience. From January to May 2026, exports of polyester staple fiber increased by 12% year-on-year, mainly to Vietnam, Bangladesh, and other Southeast Asian textile processing countries. However, fluctuations in the RMB exchange rate and trade policy adjustments in some countries introduce uncertainty for exports in the second half of the year. If overseas orders decline, the pressure to destock in the domestic market will intensify.
Practical Recommendations
For Buyers - The current price is in the mid-range, not an absolute bottom. Adopt a 'tiered procurement' strategy, splitting total demand into 3-4 batches, ordering each batch 1-2 weeks apart to lock in costs gradually. - Monitor crude oil price trends closely—polyester staple fiber is highly correlated with PTA and MEG. If crude oil falls below $70 per barrel, the staple fiber price could dip below 7,000 yuan, at which point it may be wise to increase purchase volumes.
For Manufacturers - In a loose supply-demand environment, prioritize optimizing product mix. Reduce the share of standard grades and increase production of differentiated staple fibers (e.g., flame-retardant, antibacterial, micro-denier) to enhance added value and pricing power. - Control finished goods inventory to avoid write-down losses from further price declines. Aim to keep inventory days below 20 days and consider using futures instruments for hedging.
The polyester staple fiber price of 7,255 yuan represents a waypoint in the market's journey toward supply-demand rebalancing. For prepared participants in the industrial chain, the current volatility is both a risk and a window to optimize cost structures and adjust product portfolios.