The last weekend of mid-July broke the summer lull in the polyester filament market of Shengze and Jiaxing. On July 18-19, polyester plants generally raised their quotations, and trading volumes increased significantly compared to the previous weekend. This was directly linked to the rise in international oil prices on the night of the 17th and a sharp intraday surge on the 18th. Strong support from polymer feedstocks was the core driver of this price uptrend.
Product Differentiation: Micro-denier and Bright FDY Lead
From a product structure perspective, this round of price increases was not uniform but showed clear differentiation. Among semi-dull DTY, fine-denier, multi-filament varieties such as 75D/72F, 75D/144F, 120D/192F, and 150D/288F sold well, reflecting continued demand for imitation silk and high-density fabrics.
For FDY, micro-denier and fine-denier multi-filament products remained popular, with demand increasing for 20D, 30D, 40D/72F, 50D/72F, 75D/72F, and 75D/144F. Notably, FDY 130D/36F saw active trading, mainly driven by orders for long-filament oxford fabric. This niche segment is providing an important demand boost for medium- and coarse-denier yarns.
Bright FDY in both fine and coarse denier also performed well, with sales of 300D and above rising, primarily for oxford and decorative fabrics. This indicates that while apparel fabric demand is weak, luggage, outdoor, and home furnishing fabrics are forming new demand pillars.
The POY market showed divergence: POY for texturing saw price increases but downstream buying turned cautious, while bright POY 75D/72F and 150D/288F had large shipment volumes, indicating resilient demand for certain specifications. POY for doubling remained stable.
Cost-driven vs. Demand-side Dynamics
The current market is fundamentally cost-driven. PTA and MEG prices have shown a strong upward trend in the short term, and polyester plants have a strong incentive to raise prices. Despite the peak summer season, when weaving utilization is generally low, the strong cost push has led to a gradual upward trend in polyester filament yarn prices.
For downstream weaving mills, this means the window for raw material procurement is narrowing. If PTA and MEG continue to strengthen, polyester yarn prices may rise further, increasing inventory costs. Therefore, some mills with confirmed orders actively restocked over the weekend, amplifying trading volumes.
Yarn Market: Cotton Stable, Polyester/Cotton Adjusting, Rayon Under Pressure
Compared to the active polyester market, the yarn market was relatively calm. Cotton yarn prices were stable, with only 32s and J40s seeing slightly better demand for air-jet nylon-cotton fabrics. Polyester/cotton yarn prices adjusted steadily, while polyester/viscose yarn volumes were low.
For pure polyester yarn, some specifications saw price increases, but overall sales were average, with 45s performing relatively better. Upstream polyester staple fiber prices stabilized, with the center price for 1.56×38mm at around CNY 7,700/ton, providing limited cost support.
The rayon yarn market showed structural characteristics: 10s and 30s saw fair trading, while other specifications were quiet. Viscose staple fiber prices adjusted, with a center price of around CNY 14,200/ton. Given current supply and demand, the rayon yarn market faces moderate downward adjustment pressure, and traders with high inventories should monitor risks.