On July 24, 2026, polyester DTY (150D/48F semi-dull low-elastic) prices showed notable regional divergence: Rongsheng Petrochemical quoted 9550 RMB/ton, while Zhejiang Juxing Chemical Fiber offered only 9400 RMB/ton, a gap of 150 RMB/ton. This figure directly reflects the weak demand during the traditional off-season in the textile industry and suggests that upstream chemical fiber companies are using price strategies to compete for limited orders.
Event Background
Both companies are located in Zhejiang Province, yet they offered different ex-factory prices. Rongsheng Petrochemical, an industry leader, set its price at 9550 RMB/ton, closer to the market's psychological threshold, while Juxing Chemical Fiber aggressively priced at 9400 RMB/ton to attract downstream weaving mills. This divergence is not accidental: July is a traditional low season for textiles, with declining apparel orders and reduced operating rates at weaving mills, leading to procurement based strictly on immediate needs and strong price-cutting pressure.
From the raw material side, PTA and ethylene glycol prices remained low and volatile in July, weakening cost support. Meanwhile, polyester filament yarn inventories have risen to over 20 days, putting pressure on some companies to destock. In this context, chemical fiber firms have to sacrifice margins to maintain cash flow, with smaller and mid-sized enterprises resorting to more aggressive price cuts.
Industry Impact
The immediate consequence of price divergence is increased complexity in downstream procurement decisions. For small and medium-sized weaving mills, the low price of 9400 RMB/ton is tempting, but they must consider supply stability risks—companies like Juxing may adjust production schedules due to compressed margins. Conversely, Rongsheng's higher price includes brand premium, but its delivery reliability and quality consistency as a large supplier are more trustworthy.
This phenomenon has two transmission directions in the supply chain:
- Upstream PX/PTA firms: Lower DTY prices will compress their margins, forcing raw material prices down, creating a negative feedback loop.
- Downstream fabric market: Lower DTY costs may drive down autumn/winter fabric quotes, but the procurement cycle for apparel brands has already passed, causing a time lag in actual transmission.
Notably, a price gap of 150 RMB/ton is not unusual in the off-season, but if it widens further, it could trigger regional price wars, especially in concentrated production areas like Shaoxing and Xiaoshan.