Zhejiang Polyester DTY Prices Ease: A New Signal of Price Competition Under Capacity Pressure

A notable price divergence is emerging in Zhejiang's polyester DTY spot market. On July 27, public quotes for the same specification (150D/48F, semi-dull AA grade) showed a 200 yuan/ton spread: Juxing Chemical Fiber quoted 9,350 yuan/ton, while Rongsheng Petrochemical quoted 9,550 yuan/ton. Although the absolute difference is modest, it signals a new phase of supply-demand dynamics amid high industry operating rates and ongoing capacity additions.

Supply-Demand Logic Behind Price Divergence

On the supply side, Zhejiang—the core production region for polyester filament in China—has seen no slowdown in new capacity commissioning this year. Rongsheng, as an industry leader, maintains a benchmark price of 9,550 yuan/ton, supported by brand premium and a stable customer base. Juxing, a mid-sized producer, has adopted a more aggressive pricing strategy at 9,350 yuan/ton, prioritizing cash flow turnover over margin in a slower order environment.

For downstream buyers, this spread creates tangible bargaining power. The 150D/48F specification is a mainstream raw material for water-jet looms producing conventional fabrics, with high substitutability. When small and medium producers begin to undercut leaders, buyers can reduce costs by about 2% through comparison shopping. The key question is whether this divergence will spread to other specifications and regions.

Pricing Power Shift Under Capacity Cycle

The polyester DTY sector is in the late expansion phase of a classic capacity cycle. Over the past two years, integrated polyester chain projects have been commissioned aggressively, causing supply growth to outpace demand. Although textile and apparel exports remain resilient, domestic demand recovery is sluggish due to real estate weakness and consumer caution, widening the supply-demand gap.

In this environment, pricing power is slowly shifting from producers to consumers. Over the past two years, leading companies maintained a quasi-price cartel through scale advantages and cost control. However, since Q2 2026, rising inventory pressure has prompted some mid-sized players to adopt flexible pricing, breaking the equilibrium. Juxing's 200 yuan/ton discount to Rongsheng epitomizes this trend.

Transmission Effects Along the Chain

Lower polyester DTY prices first benefit downstream weaving and dyeing sectors. For small and medium-sized weaving mills focused on conventional fabrics, lower raw material costs directly improve margins, especially during the current autumn/winter fabric stocking season. Buyers can seize this window to build moderate inventory.

However, a full-scale price war could trigger industry-wide losses. Between 2019 and 2020, the polyester filament sector experienced a deep shakeout, with prices falling below cash costs, forcing many small players to exit. Although industry concentration has increased since then, the sheer volume of new capacity means any demand-side shock could reignite a price war of similar intensity.

Practical Recommendations

For Buyers - Increase short-term polyester DTY purchases moderately, leveraging lower quotes from mid-sized suppliers like Juxing to lock in low-cost inventory, but avoid hoarding more than 30 days' supply to hedge against further price drops. - Maintain inquiries with both leading and smaller producers, splitting monthly procurement 60%-70% below the 9,550 yuan/ton threshold to lower blended costs. - Monitor quotes from small and medium producers in Shaoxing and Hangzhou, building a supplier comparison database. If the spread widens beyond 300 yuan/ton, consider shifting primary suppliers.

For Exporters - Include raw material price fluctuation clauses in export contracts, linking polyester DTY prices to order quotes, to prevent domestic price drops from compressing export margins. - Leverage current domestic price advantages to sharpen export quotes for conventional polyester fabrics, especially for price-sensitive markets in Southeast Asia and South Asia. - Watch for follow-up price adjustments by leaders like Rongsheng. If they cut prices, it suggests the bottom has not yet been reached, and export orders may be delayed.