A price gap of 200 CNY per ton emerged on July 27, 2026, between two major Zhejiang fiber producers for the same specification of Polyester DTY. Juxing Chemical Fiber quoted 9,350 CNY/ton for 150D/48F semi-dull low-elastic yarn, while Rongsheng Petrochemical listed the same product at 9,550 CNY/ton. This divergence is not random but a microcosm of the tug-of-war across the textile supply chain.
Background
On July 27, 2026, chemical fiber enterprises in Shaoxing and Hangzhou, Zhejiang, simultaneously updated their Polyester DTY quotes. Both Juxing Chemical Fiber and Rongsheng Petrochemical are leading suppliers with identical product specifications—150D/48F melt-spun AA grade—yet their pricing strategies diverged significantly.
Recent volatility in international crude oil prices has directly impacted the cost transmission chain from PX to PTA to polyester filament. As a core raw material for weaving, Polyester DTY price changes are typically first reflected in the spot markets of Zhejiang's industrial belts, including Shaoxing, Xiaoshan, and Tongxiang.
Historically, late July marks the transition from the slack season to the peak season in the textile industry. Downstream weaving enterprises tend to adopt cautious stocking strategies, increasing their sensitivity to raw material prices. This quotation divergence essentially represents a market test of the current supply-demand balance.
Industry Impact
What the Price Divergence Means
Juxing Chemical Fiber's aggressive pricing at 9,350 CNY/ton, roughly 50-100 CNY lower than the previous week, aims to secure orders through price advantage. In contrast, Rongsheng Petrochemical's maintenance of 9,550 CNY/ton reflects confidence in its brand premium and customer loyalty.
This divergence directly impacts small and medium-sized weaving enterprises. Buyers can now compare quotes from different suppliers within the same region, expanding their bargaining power. However, it also signals that raw material suppliers hold divergent views on future demand, with some already using price to gain market share.
Transmission Effects Along the Supply Chain
Lower Polyester DTY prices will cascade downstream. For weaving mills, reduced raw material costs theoretically improve profit margins, but only if grey fabric prices do not fall correspondingly. Currently, the weaving sector faces dual pressures of weak domestic demand and insufficient export orders, with grey fabric inventories generally high. Any raw material price drop may be offset by demands for lower fabric prices from end customers, ultimately failing to translate into higher profits for weavers.
- For texturizing mills, DTY price fluctuations directly impact their processing fee negotiation power.
- For dyeing and finishing enterprises, order volumes lag behind weaving capacity utilization.
- For apparel brands and traders, lower raw material costs reduce procurement expenses, but inventory devaluation risks must be monitored.
Regional Industrial Belt Response
As the largest chemical fiber cluster in China, price movements in Zhejiang's Shaoxing and Hangzhou regions carry significant signaling weight. This divergence may trigger follow-up adjustments in surrounding areas such as Xiaoshan, Tongxiang, and Wujiang's Shengze. If Rongsheng Petrochemical is eventually forced to lower prices, it could initiate a full-scale industry price adjustment.
Notably, this quotation update occurs 30-40 days before the traditional 'Golden September and Silver October' peak season. If Polyester DTY prices continue to decline in early August, it could compress the seasonal rally; conversely, price stabilization or recovery might spark a wave of restocking.