In mid-July, the polyester filament yarn market in the Jiangsu-Zhejiang region entered a sluggish phase, with trading volumes notably lower than previous periods. Although major polyester mills kept their offers stable, downstream buyers showed weak purchasing intent, resulting in a market characterized by 'stable prices but scattered transactions.' This phenomenon is driven by both seasonal demand weakness and sudden weather disruptions.
Background
According to publicly available industry data, trading of polyester filament yarn in the Shengze and Jiaxing markets on July 11-12 was thin. Semi-dull FDY 150D/96F was quoted at 9,050 yuan per ton, and DTY 150D/48F at 8,150 yuan per ton, both unchanged from the previous day. However, due to the impact of a typhoon, downstream weaving and texturing plants turned cautious, adopting a 'small quantity, multiple times' replenishment strategy, leading to overall low transaction volumes.
Product differentiation was significant. Semi-dull FDY 54D/24F, 68D/24F, and 75D/36F maintained active sales, primarily for warp knitting. Bright FDY 150D saw good demand driven by water-jet oxford fabric and polyester-nylon blended weft yarn, with quotes at 8,350-8,400 yuan per ton. FDY 75D/36F black yarn and DTY 75D black yarn also showed robust demand, used in memory fabrics and lining materials such as black crepe and black twill.
DTY 75D/72F and 100D/144F network yarns had stable demand in both water-jet and warp knitting sectors. DTY 150D/96F and 200D/96F network yarns, with wide applications in oxford fabric and satin crepe, were among the actively traded items. In contrast, POY purchasing for texturing and POY-DTY network blending was sluggish, reflecting low confidence among texturing mills.
Industry Impact
The current weakness in the polyester filament market is essentially a result of upstream-downstream games. Upstream, PTA and MEG feedstock prices have been relatively stable, offering limited cost support. Midstream, polyester mills have manageable inventory levels, so they prefer to keep prices steady. Downstream, weaving mills face lackluster orders, and with external disruptions like typhoons, they are more inclined to reduce raw material inventories and accelerate cash flow.
This 'low inventory, fast turnover' strategy puts downward pressure on polyester yarn prices. In the short term, the polyester filament market is likely to maintain a volatile pattern, with some varieties like POY potentially facing price adjustments. Mid-to-long-term trends will depend on PTA and MEG supply-demand dynamics—if feedstock prices rise significantly or downstream orders improve, polyester prices may break the current stalemate.
In the yarn market, cotton yarn prices were stable, with demand for 21s and J32s air-jet varieties slightly up, mainly for air-jet polyester-cotton fabric. Polyester-cotton and polyester-viscose yarns were stable but traded thinly. Pure polyester yarn 45s sold better than other specs, but with polyester staple fiber prices adjusting (center price at 7,650 yuan per ton), its price is expected to follow. Rayon yarn 30s saw active sales due to demand for diamond cotton fabric, with viscose staple fiber prices consolidating at 14,200 yuan per ton. Rayon yarn prices are expected to adjust moderately in the near term.