Polyester Staple Fiber Drops 170 Yuan in a Day: Accelerated Cost Transmission Reshapes Industry Profit

On July 27, the spot price of polyester staple fiber in Jiangsu dropped sharply by 170 yuan/ton to 7,500 yuan/ton, a decline of about 2.2% — a rare magnitude in the past three months. The direct trigger was the collapse in upstream crude oil costs: after the US and Iran suspended mutual attacks, international oil prices fell, and the polyester raw material sector quickly followed.

For textile industry professionals, the focus should not be on the single-day price drop itself, but on what this event reveals: the cost transmission chain has become extremely sensitive. Since 2026, the linkage cycle between polyester staple fiber prices and crude oil has shortened from weeks to days, meaning any geopolitical tremors will quickly reach the yarn procurement end.

Event Background

The trigger for this price adjustment is clear: the US and Iran suspended military strikes, easing tensions in the Middle East, and Brent crude oil fell accordingly. The cost logic of the polyester chain is 'crude oil → PX → PTA/MEG → polyester chip → polyester staple fiber', and fluctuations in any link are amplified.

In the spot market, the negotiation range for polyester staple fiber in Jiangsu has fallen to 7,450-7,600 yuan/ton, with some low-end sources even touching around 7,350 yuan/ton. This price level is close to the cash cost line for some small and medium-sized staple fiber producers. Industry data shows that the average processing profit for the polyester staple fiber industry in the first half of 2026 was about 200-300 yuan/ton, and this drop has almost eaten up all profit margins.

Notably, this is not an isolated incident. Since July, the polyester chain has experienced multiple chain reactions of 'oil falls → raw materials fall → staple fiber falls'. In just the third week of July, PTA spot prices fell by more than 3%, and MEG fell by nearly 2%. The continuous decline in costs is forcing each link of the chain to reassess pricing logic.

Industry Impact

For upstream staple fiber producers, rapid price drops mean a sharp increase in inventory depreciation risk. Companies that stocked up at high prices in mid-July face significant book losses. Some may be forced to cut production or schedule maintenance to hedge risks, further disrupting regional supply-demand balance.

For downstream spinning enterprises, lower raw material costs should be a positive, but sharp declines exacerbate a wait-and-see attitude in procurement. China Customs data shows that in the first half of 2026, China's imports of polyester staple fiber fell by about 8% year-on-year, partly because downstream companies tend to 'buy on rising prices, not falling prices'. When prices are in a downtrend, spinning mills actively compress raw material inventory cycles from the normal 15-20 days to 7-10 days, which in turn suppresses spot liquidity for staple fiber.

From a regional industry cluster perspective, Jiangsu, as a major production area for polyester staple fiber (accounting for about 35% of national capacity), this price adjustment most directly affects surrounding textile clusters such as Nantong, Wujiang, and Changshu. Weaving enterprises in these areas mainly use polyester-cotton blends and pure polyester yarns. For every 100 yuan/ton drop in staple fiber prices, their raw material costs can be reduced by about 0.5 percentage points. However, in a sharp decline, companies worry more about 'buying today and it being cheaper tomorrow', so they hesitate to restock.

Practical Recommendations

For Procurement Teams - The current price is near the cost line for some factories, leaving limited room for further declines. Consider building positions in batches within the 7,450-7,500 yuan/ton range to avoid betting on a single trend. - Shorten procurement cycles to 7-10 days, while using forward pricing tools to lock in some volume and hedge against short-term volatility. - Monitor upstream PTA plant maintenance schedules: if concentrated maintenance occurs in late July to early August, cost support may emerge, providing an opportunity to increase procurement.

For Foreign Trade Companies - Include raw material price fluctuation clauses in export order quotes, e.g., 'if staple fiber price fluctuates by more than 5%, both parties will negotiate to adjust the contract price', to prevent profits from being eroded by raw material volatility. - Use RMB forward settlement tools to lock in exchange rates. With falling raw material costs and fluctuating RMB exchange rates, foreign trade companies need to manage dual risks simultaneously. - Monitor price spreads with Southeast Asian markets: if domestic staple fiber prices continue to fall, export competitiveness to countries like Vietnam and Bangladesh will strengthen, offering an opportunity to expand new customer bases.