Polyester staple fiber (PSF) prices in China are undergoing a notable correction. According to publicly available industry data, the benchmark price for PSF stood at 7,267.80 yuan per ton on July 8, 2026, a decline of 2.03% from the start of the month at 7,418.65 yuan per ton. Despite a marginal daily uptick of 0.06%, the broader downward trend has persisted for weeks, signaling shifting supply-demand dynamics in the chemical fiber market.
Price Center Shifts Downward, Volatility Range Narrows
Over the past 12 months, PSF prices have fluctuated between 6,267.17 yuan/ton and 8,426.02 yuan/ton, with a median of 7,346.6 yuan/ton. The current price of 7,267.80 yuan/ton sits slightly below the median, leaving a gap of 1,158.22 yuan from the annual peak and only 1,000.63 yuan above the trough. This indicates that prices have slipped from the high range of last year into the mid-range, with the center of gravity shifting downward.
For spinning mills, this price level means raw material cost pressure has eased compared to last year's peak of 8,426 yuan/ton, which severely squeezed margins. The current drop of over 13% theoretically frees up more profit space downstream. However, end-user orders have not expanded in tandem.
Dual Pressure from Costs and Demand
The main feedstocks for PSF—PTA and MEG—have both shown weakness recently. Fluctuations in international crude oil prices have weakened cost support from the petrochemical chain. Meanwhile, domestic textile end-consumption has recovered slower than expected, particularly against a backdrop of sluggish growth in foreign trade orders. Downstream weaving mills are adopting a hand-to-mouth procurement strategy, reluctant to build large inventories.
Feedback from key industrial clusters in Shengze and Changxing indicates that weaving mill utilization rates remain at 60-70%, lower than the same period last year. Inventory pressure is cascading from chemical fiber plants to yarn mills and fabric mills, creating a wait-and-see mentality that exacerbates the price decline.
Implications for Buyers and Exporters
For procurement teams, the current price level presents a window worth monitoring. Should prices fall below 7,000 yuan/ton, some companies may trigger restocking actions. However, July is typically a low season for textiles, with preparation for the 'Golden September and Silver October' period not starting until August. This suggests prices may linger at low levels in the near term rather than rebounding quickly.
For exporters, exchange rate fluctuations and overseas destocking paces are equally critical. The price gap between China's PSF and import prices in key destinations like Southeast Asia and South Asia is narrowing, eroding China's price advantage. Some exporters have begun adjusting their quotation strategies to secure order volumes.