The net profit of polyester filament leaders doubled in the first half of the year, a figure that is not an isolated case but a concentrated release after deep adjustments in the industry's supply-demand structure. Xinfengming expects a net profit of 1.38 billion to 1.5 billion yuan in H1 2026, up 94.59% to 111.51% year-on-year, with non-recurring net profit growth approaching 140%. Behind these numbers lies a turning point for the chemical fiber industry from overcapacity to orderly contraction.
Supply and Demand Improve in Sync
In the past years, continuous capacity expansion led to vicious price competition in the polyester filament sector. In late 2025, leading companies proactively reached a consensus on production cuts, reducing operating rates for mainstream products like POY and FDY. Combined with tightened approval for new capacity under dual-carbon policies, supply effectively contracted. Meanwhile, inefficient capacity accelerated its exit, further increasing market concentration.
Demand received dual support: domestic clothing wholesale markets advanced their seasonal transition, releasing orders for autumn and winter fabrics steadily, while weaving factories replenished stocks. Overseas apparel procurement orders continued to recover, with Southeast Asian and European brands increasing purchases of domestic fabrics. The price spread between upstream and downstream products widened, boosting corporate gross margins.
Cost and Industrial Chain Advantages Highlighted
In Q2, international crude oil prices stabilized, reducing raw material cost volatility for chemical fibers. The advantages of leading companies' full industrial chain layouts became more evident. Xinfengming effectively hedged raw material price fluctuations through its integrated PTA and spinning production. Industry public data shows that the entire supply chain inventory remains low. With the traditional peak season for apparel in Q3 approaching, downstream weaving factories may concentrate on replenishing stocks, extending the profit cycle for the chemical fiber industry.
From a long-term perspective, the acceleration of domestic textile and apparel brands going global, along with growing demand for functional fabrics and recycled polyester products, is reshaping the market. Leading chemical fiber companies are actively deploying green and low-carbon spinning processes, increasing the share of differentiated high-end filament products. This performance surge confirms the recovery of the upstream textile supply chain, accelerating the elimination of small and inefficient capacity and concentrating market share among integrated, large-scale leaders.