Over the third weekend of July, the polyester filament yarn market in Shengze and Jiaxing broke the midsummer lull. Following a rise in international crude oil prices on the night of the 17th and further strength in dark trading on the 18th, polymerization feedstock costs quickly transmitted to polyester plants, prompting consecutive price increases for polyester filament yarn on July 18-19. Compared with the same period last week, transaction volumes over these two trading days expanded noticeably. However, the market did not see a broad-based rally but rather a clear structural divergence.
Cost-Driven Rally Meets Demand Divergence
The core driver of this price increase came from upstream. Supported by crude oil, PTA and MEG remained firm, strengthening polyester plants' willingness to raise prices. Feedback from downstream, however, indicated that the current period is a traditional off-season for textiles, with weaving mills operating at generally low utilization rates. Their procurement of raw materials was more for rigid replenishment than active stockpiling. This contradiction—cost-push inflation versus weak demand absorption—makes the market's trajectory heavily dependent on continued upstream strength.
Specifically, differentiated products became the highlight of this round. Among semi-dull DTY, specifications like 75D/72F, 75D/144F, 120D/192F, and 150D/288F sold well, reflecting downstream preference for lightweight, high-simulation fabrics. For FDY, micro-denier and fine-denier multi-filament products continued to be popular, with demand for 20D, 30D, 40D/72F, 50D/72F, 75D/72F, and 75D/144F increasing significantly. Notably, FDY 130D/36F saw active trading, mainly benefiting from increased orders for filament oxford fabric, bringing some warmth to the sluggish luggage fabric market. Bright FDY in both fine and coarse denier series sold well, with demand for 300D and above rising, primarily used for oxford and decorative fabrics, indicating relatively stable demand in outdoor and home furnishing sectors.
Yarn Market: Cotton Stable, Rayon Under Pressure
Compared to the active polyester yarn market, the yarn market was relatively calm. Cotton yarn prices were stable, with 32s and J40s selling well due to demand for air-jet cotton-nylon fabrics, while other specs had average trading. Polyester-cotton yarn prices adjusted steadily, and polyester-viscose yarn saw limited volumes. Pure polyester yarn prices edged up, but overall sales were average, with 45s performing relatively better. Polyester staple fiber prices consolidated around 7,700 yuan per ton. Rayon yarn saw some transactions in 10s and 30s, but overall remained quiet, with viscose staple fiber prices adjusting around 14,200 yuan per ton. Looking ahead, rayon yarn may face moderate adjustments, requiring cautious downstream purchasing.
Industry Impact: Cost Pass-Through and Procurement Strategy at Weaving Mills
For weaving enterprises in Shengze and Jiaxing, the core issue is whether they can successfully pass on rising raw material costs to downstream fabric merchants and garment factories. With end-user demand yet to show a clear recovery, upstream price increases are squeezing profit margins in the weaving segment. Some mills may choose to reduce purchases of conventional varieties and shift towards differentiated products with higher added value or confirmed orders. This explains why specifications like micro-denier and bright coarse-denier performed well—they correspond to final products with stronger pricing power.
From a broader perspective, this round of price movements highlights the intensifying game between the upstream (chemical fiber) and downstream (weaving, apparel) segments of the textile chain. Polyester plants have cost support, but if end-consumer demand remains weak, price increases are unsustainable. For foreign trade companies, recent exchange rate fluctuations and uncertainties in overseas orders add to the difficulty of raw material procurement decisions.