A 300 CNY per ton price gap has emerged for the same specification of polyester POY (150D/48F semi-dull) among different producers in Zhejiang Province. On August 4, Rongsheng Petrochemical quoted 8250 CNY/ton, while Tongkun Group's Hengteng Differential Fiber quoted 8550 CNY/ton, with other producers such as Shenghong Chemical, Jiabao New Fiber, and Senkai New Materials pricing between 8300 and 8450 CNY/ton. Such a wide spread is unusual and signals a shift in pricing dynamics.
Price Divergence: A Mirror of Costs and Strategies
The 300 CNY gap reflects different approaches to cost pass-through. The main raw materials for POY are PTA and MEG, and recent volatility in crude oil prices has loosened feedstock costs. However, companies hold different inventory cycles, so their sensitivity to cost declines varies. Rongsheng, as an integrated leader with high raw material self-sufficiency, can adjust quotes more flexibly. In contrast, Tongkun's Hengteng unit, which relies more on external feedstock purchases, may experience a lag in cost transmission, keeping its quote relatively firm.
Moreover, the divergence exposes differing inventory strategies. Lower-priced producers like Rongsheng and Juxing Chemical may be prioritizing destocking, using price advantages to secure orders. Higher-priced producers like Tongkun Hengteng may hold firmer expectations for peak-season demand and resist price cuts. This strategic split is especially evident during the transition between low and peak seasons, and buyers must scrutinize it carefully.
Intensifying Competition Within the Industry Belt
Zhejiang is the core production hub for polyester POY in China, and all quoted companies are located in Hangzhou and Shaoxing, including Rongsheng (Hangzhou), Shenghong (Hangzhou), Kaishi Group (Hangzhou), Jiabao New Fiber (Shaoxing), Senkai (Hangzhou), Juxing (Shaoxing), and Tongkun Hengteng (Hangzhou). A 300 CNY spread within the same belt indicates that competition has shifted from following the market to independent positioning.
For downstream weaving mills, this means greater room for negotiating purchase costs. Previously, leading enterprises often anchored prices, and smaller firms would align with them. Now, even the leaders have diverged, and smaller producers may price more flexibly based on their own order books. This change effectively breaks the old price consensus and fragments the market.
Implications for Purchasing and Foreign Trade
For buyers, the price divergence is both an opportunity and a risk. The opportunity lies in comparing suppliers to find better value; the risk is that low prices may indicate high inventory pressure, leading to potential dumping or quality instability. Therefore, buyers should not focus solely on quotes but also evaluate operating rates, inventory levels, and delivery lead times.
For foreign trade companies, POY price fluctuations directly affect cost calculations for export orders. In the current environment, exporters should avoid locking in long-term contracts with a single supplier and instead adopt a strategy of batch purchasing and multi-supplier comparison. Additionally, they must monitor exchange rates and raw material trends, as POY prices may decline further during cost easing cycles, and locking in high-priced inventory too early could weaken export competitiveness.