On July 19, Wangjiangjing market polyester filament yarn quotes showed that over the past week, prices for FDY and POY in several specifications increased by 50-150 yuan per ton, while DTY series remained flat. This uneven price hike reflects the delicate game between upstream and downstream in the polyester supply chain.
Structural Price Hikes: Fine Denier Leads, Coarse Denier Follows
Looking at specific data, for FDY semi-dull 50D/24F, Rongsheng Chemical's quote remained flat at 9,350 yuan/ton, but the same specification from Zhejiang Tongkun, Jiabao Chemical, Xinfengming, Shenghong Chemical, and Tiansheng Chemical all rose by 50 yuan/ton, to 9,350-9,450 yuan/ton. The increase was more significant for FDY bright 75D/36F, with Rongsheng Chemical up 100 yuan to 8,900 yuan/ton, and Yixing Huaya up 50 yuan to 8,850 yuan/ton.
The price increase for POY was broader. For 75D/96F, Jiatong Chemical, Shenjiu Chemical, and Shenghong Chemical all raised prices by 100 yuan to 8,500 yuan/ton. For 100D/96F, Xinfengming, Yixing Chemical, and Shuangtu Chemical all increased by 100 yuan to 8,400-8,450 yuan/ton. For 150D/96F, Zhejiang Tongkun saw the largest increase of 150 yuan to 8,350 yuan/ton.
In contrast, all DTY specifications remained unchanged. This divergence indicates that the cost pressure is currently concentrated in the upstream and primary processing stages, and has not yet effectively transmitted to the texturing segment.
Cost Transmission Logic: Polyester Raw Materials Drive Price Hikes
The direct driver of this round of polyester yarn price increases is upstream. PTA and MEG prices have strengthened recently, squeezing polyester plant margins and forcing them to raise polyester filament yarn prices. But why are increases concentrated in FDY and POY, while DTY remains flat? The key lies in the difference in bargaining power along the supply chain.
FDY and POY are directly spun from polyester melt, with high production concentration, mostly by large polyester companies like Rongsheng, Tongkun, and Xinfengming. These suppliers have stronger bargaining power over downstream weavers. DTY, on the other hand, is a textured product from POY, produced by numerous small and medium-sized texturing mills in a highly competitive market. Downstream weavers have more flexibility in DTY procurement: when raw material prices rise, they can reduce DTY purchases and increase POY purchases for in-house texturing, thereby suppressing DTY price increases.
Additionally, FDY fine-denier yarns (e.g., 50D/72F, 75D/144F) are mainly used for imitation silk and high-density fabrics, where terminal demand remains relatively firm. DTY is primarily used for brushed fabrics and fleece, currently in a traditional off-season with weak demand, so texturing mills are cautious about raising prices.
Industry Impact: Weavers Adopt More Rational Procurement Strategies
Wangjiangjing, as a key weaving cluster in China, its polyester yarn price movements serve as a bellwether for the national market. The structural nature of this price hike indicates that downstream weavers are not passively accepting price increases; instead, they are flexibly adjusting procurement strategies based on their product mix.
For weavers using FDY as the main raw material for imitation silk and lining fabrics, rising raw material costs will directly compress profit margins. Some may respond by reducing purchase volumes, drawing down inventories, or slightly raising grey fabric prices. For weavers using DTY for brushed and fleece fabrics, raw material costs remain stable for now, but they should be alert to the lagged transmission of POY price increases to DTY.
From a broader perspective, this round of price hikes also reflects the inventory cycle of the polyester supply chain. Current polyester plant inventories are at moderately low levels, and weaver raw material inventories are also low, providing elasticity for price increases. If terminal orders pick up, the scope of price increases may expand further.