Jiangsu Polyester Staple Fiber Price Holds at 7500 Yuan/Ton: Supply-Demand Standoff

Jiangsu polyester staple fiber spot prices have held at the 7,500 yuan/ton threshold for several days, with morning negotiations ranging from 7,450 to 7,600 yuan/ton and lower offers near 7,300 yuan/ton. This plateau is no coincidence—it represents a temporary truce between raw material costs and end-user demand in mid-July.

The Logic Behind the Price Anchor

According to industry data, the 7,500 yuan/ton level is the current “psychological equilibrium” for the polyester staple fiber chain. Upstream PTA and MEG prices have narrowed their fluctuations recently, providing cost support. However, downstream spinning mills have not significantly increased operating rates, purchasing only for immediate needs without chasing higher prices. The 7,300 yuan/ton low-end offers reflect some mills’ willingness to destock, but the overall transaction center has not shifted downward.

This price means different things to different players. For producers, 7,500 yuan/ton is close to the breakeven line for many small and medium mills, leaving little room for further cuts. For buyers, the current level is mid-to-low within the year, but not necessarily the absolute bottom—hoarding risks still need assessment.

Regional Transmission Effects

As Jiangsu is a major polyester staple fiber production base, its price stability directly impacts downstream textile clusters like Shengze and Nantong. The current stable pricing in Jiangsu has, to some extent, curbed drastic fluctuations in yarn prices in surrounding areas, but it has also slowed the transmission of inventory to final consumption.

By category, polyester staple fiber is mainly used in cotton blends, nonwovens, and filling materials. July is traditionally a low season, but this year’s high summer temperatures have supported demand for certain outdoor textiles, which may be a hidden factor preventing further price declines.

Implications for Procurement and Inventory Strategy

The market is in a “weak equilibrium.” Any external variable—crude oil price shocks, PTA maintenance plans, or a recovery in end-user orders—could break this balance. The Texcircle editorial team believes the next two weeks will be a critical window: if downstream weaving mill operating rates rise, staple fiber prices may stabilize above 7,500 yuan/ton; otherwise, they may test the 7,300 yuan/ton level.

For Buyers - Consider moderate restocking at current levels, but adopt a phased approach to avoid heavy positions. - Watch for low-end offers near 7,300 yuan/ton, which may signal a temporary bottom. - Negotiate short-term price lock agreements with upstream mills to hedge volatility.

For Mills - Control finished goods inventory to avoid excessive buildup during the low season. - Use futures to hedge raw material price risks, especially the PTA-staple fiber spread. - Shift product mix toward higher-value varieties (e.g., differentiated staple fibers) to reduce reliance on commodity grades.