PTA Surges, Acrylonitrile Plunges: Textile Raw Material Market Divergence Intensifies, Downstream Sourcing Strategies Need Adjustment

PTA surged 2.25% week-on-week to 5,910.50 yuan/ton, with a year-on-year increase of 21.80%, making it the strongest performer in the textile raw material market this week. In contrast, acrylonitrile plunged 4.20% to 9,133.33 yuan/ton, though still up 15.61% year-on-year, the short-term downward pressure is significant. This divergence reflects a dual game between cost-side and supply-demand fundamentals.

Background

According to industry public data, during the 27th week of 2026 (July 6-10), the textile bulk commodity price change list showed only 4 items with a weekly increase, while 9 items declined. The overall sector posted a weekly average decline of -0.38%. PTA led the gainers with a 2.25% rise, followed by polyester staple fiber up 0.95%, and cotton yarn 32S and 21S up 0.61% and 0.28% respectively. Viscose staple fiber, spandex, polyester yarn, and rayon yarn remained flat.

Among the decliners, acrylonitrile fell the most at -4.20%, polyester FDY and DTY dropped 1.68% and 1.28% respectively, while cotton, nylon POY, and polyester POY declined between 0.77% and 0.92%. Raw silk edged down 0.07%, with a year-on-year decline of 10.07%, making it one of the weakest performers.

Industry Impact

PTA's strong rally pushed up the cost of downstream polyester staple fiber, which passively rose 0.95%. However, polyester filament yarns (FDY, DTY, POY) all fell, with declines ranging from 0.77% to 1.68%. This divergence between staple fiber and filament yarn reflects structural differences in downstream weaving demand: staple fiber is mainly used in non-woven fabrics and some home textiles with relatively rigid demand, while filament yarn is more linked to apparel fabrics, where downstream weavers are cautious about high-priced raw materials due to weak order intake.

The sharp drop in acrylonitrile benefits the acrylic fiber and ABS resin chains. Acrylonitrile is the main raw material for acrylic fiber; its price decline will directly reduce production costs, potentially triggering price cuts for acrylic fiber products. For wool spinning and knitting enterprises using acrylic fiber, this provides a temporary cost relief window.

The slight increase in cotton yarn 32S and 21S, against a 0.92% decline in cotton prices, means expanding profit margins for spinning mills: lower cotton costs with slightly higher yarn prices. However, if cotton prices continue to weaken, there is a risk of catch-up declines in cotton yarn.

Raw silk's 10.07% year-on-year decline indicates the sericulture industry remains in a cyclical trough. Weak demand for silk fabrics and high international buyer inventories suggest limited upside for raw silk prices in the near term.

Practical Advice

For Buyers - PTA prices are at high levels; chasing rallies carries significant risk. Focus on hand-to-mouth purchasing and consider using PTA futures for hedging to lock in forward costs. - Acrylonitrile's price plunge offers a good restocking opportunity. Acrylic fiber and ABS-related companies can increase inventories moderately, but control positions to guard against further declines. - Cotton yarn prices are relatively firm, but cotton costs are falling. Negotiate floating price contracts with mills to transfer some cost reduction benefits to the procurement side.

For Foreign Trade Companies - Weaker polyester filament yarn prices enhance the competitiveness of Chinese textile exports. Accelerate order-taking to lock in long-term export orders using lower raw material costs. - With raw silk prices depressed, consider signing long-term low-price supply agreements with overseas buyers to gain market share through volume. Also monitor domestic policy signals for the silk industry. - Nylon products have seen slight price declines but remain 6%-9% higher year-on-year. Offer appropriate discounts in foreign trade quotations to maintain customer relationships and avoid order loss due to high prices.