Partial Price Hikes for Polyester Filament Amidst Diverging End-Use Demand: Analysis of Shengze-Jiaxing Textile Raw Material Market on July 21

On July 21, the Shengze and Jiaxing textile raw material markets sent a nuanced signal: major polyester producers raised list prices for filament yarns while narrowing discount ranges, yet in actual transactions, some factories quietly offered greater flexibility. This 'apparent hike, hidden concession' pattern reflects the fragile sentiment along the supply chain.

Polyester Filament: Active Sales in Some Segments, Overall Weakness

FDY series showed clear divergence. FDY 40D/72F and 75D/144F maintained high shipment volumes, supported by downstream orders for fine-denier fabrics. Semi-dull FDY 100D/72F saw moderate movement due to a slight recovery in chiffon fabric demand. Notably, full-dull FDY yarns performed well, primarily used in water-jet woven full-dull taffeta for outdoor apparel and luggage. In contrast, bright FDY fine denier yarns had sluggish sales; FDY 120D/96F and 150D/96F were particularly weak, reflecting low circular knitting machine utilization.

In the DTY segment, 75D/72F network yarn emerged as a star, favored for its versatility in both warp knitting and water-jet weaving. DTY 30D/72F, 75D/144F, and 100D/144F also saw decent volumes, indicating sustained demand for lightweight fabrics. POY products faced cautious buying from texturing mills, with intermingled POY demand especially soft.

Yarn Market: Rayon Yarn Shows Strength, Cotton Yarn Steady

Overall yarn trading was stable, but niche opportunities emerged. Cotton yarn 32s and 40s saw steady volumes, driven by orders for air-jet cotton-nylon fabrics. Polyester-cotton yarn trading was light, with 80/20 blends in 32s and 45s performing relatively better. Polyester-viscose yarn 40s/2 volumes continued to rise, with prices adjusting modestly.

Pure polyester yarn 45s traded around RMB 15,700/ton, with stable demand; upstream polyester staple fiber hovered near RMB 7,800/ton. The rayon yarn segment showed a structural opportunity: 10s count gained traction due to orders for diamond-cotton fabric, while other counts saw limited activity. Viscose staple fiber prices remained firm at RMB 14,200/ton, supporting rayon yarn costs. Industry insiders expect rayon yarn prices to consolidate in the near term, but sustained diamond-cotton fabric orders could further boost 10s demand.

Industry Impact: Low Inventories vs. Raw Material Volatility

A key tension defines the current market. Upstream, international oil prices retreated, and polyester raw materials PTA and MEG corrected, weakening cost support. However, polyester plants' POY inventories are low, with some specifications even tight, giving producers leverage to hold prices. Downstream texturing and weaving operating rates edged up, but buyers remained cautious, purchasing only for immediate needs rather than building stocks.

This 'low inventory + weak demand' combination suggests limited downside risk but also insufficient upward momentum. Most market participants expect short-term polyester yarn prices to consolidate, with a medium-to-long-term rational correction toward supply-demand fundamentals. For buyers, this is not an ideal time for bulk purchases, but phased buying at lower levels could smooth costs.

Practical Recommendations

For Purchasers - Monitor supply dynamics of full-dull FDY and DTY network yarns; these have relatively rigid demand and may see reduced bargaining room—consider early contracts. - For weaker specifications like FDY 120D/96F, extend inquiry cycles to leverage supplier pressure for better pricing. - If using rayon yarn 10s for diamond-cotton fabric, negotiate short-term framework agreements to hedge against viscose staple fiber price firmness.

For Weaving Mills - Use the current POY procurement window to build moderate inventories of fine-denier POY, preparing for future fine-denier fabric orders. - If full-dull taffeta orders persist, discuss long-term purchase discounts with polyester plants to lower raw material costs. - Track polyester staple fiber prices closely; if they fall below RMB 7,600/ton, consider it a tactical opportunity to restock pure polyester yarn.