The six major polyester leaders posted a combined net profit of over 27 billion yuan in the first half of 2026, a figure that commands attention across the chemical fiber industry. Hengli Petrochemical led with 7.2 billion yuan, while Hengyi Petrochemical saw growth of up to 2,546.88%. These numbers are not driven by a single factor but by the combined effect of geopolitical dividends and industrial self-regulation.
Dual Engines of Profit Surge
The first engine is crude oil prices. Brent crude started at $61/barrel in early 2026, surged to $118/barrel in March due to US-Iran tensions, and stabilized around $99/barrel in Q2. For companies with integrated refining-chemical facilities, higher oil prices directly widen product spreads. Hengli's 20-million-ton refining complex and Shenghong's 2.8-million-ton PX capacity demonstrated strong profitability during this upcycle.
The second engine comes from supply-side reform. Over the past two years, overcapacity in PTA and polyester filament led to price wars and industry-wide losses, with PTA losing up to 200 yuan per ton. In late 2025, leading companies reached a voluntary production cut agreement, reducing operating rates for POY and FDY. In 2026, no new PTA capacity was added, and outdated capacity exited faster, fundamentally improving supply-demand dynamics. Tongkun's repaired spreads and Xinfengming's 94% net profit growth directly reflect this logic.
Chain Transmission and Regional Impact
Zhejiang province is the biggest beneficiary of this cycle. Tongkun (Jiaxing), Xinfengming (Huzhou), Rongsheng (Hangzhou), and Hengyi (Xiaoshan) all gained from the profit surge. Shenghong (Lianyungang, Jiangsu) and Hengli (Changxing Island, Dalian) also benefited as their integrated complexes reached stable operations.
However, the profit surge upstream hasn't fully transmitted downstream. Rising polyester filament prices are squeezing weavers in Shengze and Keqiao, with some small mills reducing operating rates. This indicates uneven profit distribution across the chain, with upstream oligopoly power strengthening.
Sustainability of the Boom
The sustainability depends on two variables: the Middle East geopolitical situation (Strait of Hormuz risks remain) and the execution of anti-involution policies. Brokerages generally believe the expansion cycle is near its end, with capacity release peaks for the PX-PTA-polyester chain passed. For buyers, this means polyester filament prices will stay relatively high over the next two years, limiting bargaining room.