On July 6, the DTY 150D/48F semi-dull low-elastic yarn market in Jiangsu and Zhejiang showed notable price divergence. Rongsheng Petrochemical quoted 9050 yuan/ton, Zhejiang Juxing offered 9000 yuan/ton, while Tongkun Group maintained 9550 yuan/ton, widening the spread for the same specification to 500 yuan. This dispersion reflects different strategies among chemical fiber enterprises in balancing cost pass-through and inventory pressure.
Price Divergence Reflects Strategic Differentiation
Among the listed quotes, Zhejiang Juxing Chemical Fiber offered the lowest at 9000 yuan/ton, about 300 yuan below the industry average. Tongkun Group held firm at 9550 yuan/ton, showing top players' ability to buffer price declines through brand premium and customer loyalty. Hangzhou Kaisi, Zhejiang Zhengkai, and Zhejian Senkai clustered in the 9300-9500 yuan/ton range, forming a middle price band.
This gradient is no coincidence. Rongsheng's 9050 yuan/ton quote relates to its high upstream integration in PX-PTA. When PTA prices soften, Rongsheng can compress DTY margins to maintain operating rates, while pure draw-texturing companies, with rigid raw material costs, find it harder to follow price cuts.
Weakening Downstream Operating Rates Are Core Pressure
The fundamental drag on DTY prices comes from weak demand. Since June, weaving operating rates in Jiangsu and Zhejiang have slipped from a peak of 75% to around 65%, with some small and medium mills cutting production or taking holidays due to insufficient orders. High grey fabric inventories have pushed weavers to adopt a hand-to-mouth procurement strategy, avoiding building raw material stocks.
Meanwhile, polyester chip prices corrected in late June, narrowing the chip-yarn spread, though DTY processing margins remain reasonable. On the cost side, PTA prices hover near 5800 yuan/ton, while MEG prices edged up on port inventory drawdowns. Overall cost support for DTY is limited.
Regional Quote Differences Reflect Capacity Distribution
All quoted companies are in Zhejiang Province, covering clusters in Hangzhou, Shaoxing, and Jiaxing. Hangzhou quotes range from 9050 to 9550 yuan/ton, while Shaoxing's lowest is 9000 yuan/ton. This regional spread correlates directly with local draw-texturing machine utilization—Shaoxing's higher concentration of capacity intensifies competition and increases price elasticity.
Notably, Tongkun's quote exceeds the industry average by about 400 yuan. This reflects both brand premium and the ability of large firms to maintain pricing systems through long-term contract lock-ins. For buyers, short-term procurement should prioritize smaller Shaoxing firms, while long-term partnerships may benefit from large suppliers' delivery reliability.
Outlook: Focus on Polyester Feedstock and End-User Orders
In the short term, DTY prices still have room to fall. If polyester chip prices continue declining, DTY processing margins may widen passively, prompting mills to cut prices to destock. Medium-term trends depend on the recovery of textile and apparel orders, particularly whether autumn/winter fabric restocking kicks off in late July.
From an inventory cycle perspective, current DTY inventory days at chemical fiber firms stand at 15-20 days, moderately above normal. If downstream weaving rates stay low, inventory pressure could shift further upstream to polyester, forcing PTA capacity cuts. Texworld suggests supply chain players closely monitor August order start signals.