Polyester POY Price Divergence: Zhejiang Fiber Makers Narrow Price Band to 300 Yuan, Intensifying Market Competition

On August 4, 2026, eight polyester fiber producers in Zhejiang quoted POY (polyester pre-oriented yarn) prices within a tight range of 8,250 to 8,550 yuan per ton, a spread of only 300 yuan. This seemingly calm band actually reveals growing divergence between industry leaders and smaller mills regarding expectations for the second half of the year.

Market Snapshot

According to public quotes, Tongkun Group's Hengteng Differential Fiber led at 8,550 yuan/ton, while Rongsheng Petrochemical quoted 8,250 yuan, a difference of 300 yuan. Notably, Rongsheng, a sector giant, priced at the lower end, whereas Tongkun held a higher stance. This contrast is not accidental—it reflects differing assessments of inventory pressure and order visibility.

Geographically, all eight companies are based in Zhejiang, spanning Hangzhou and Shaoxing. Hangzhou, a traditional polyester filament hub, hosts Rongsheng, Kaisi, Senkai, and other major plants; Shaoxing is home to Jiabao New Fiber and Juxing Chemical Fiber. This concentration means price movements quickly transmit across the province, influencing spot benchmarks in the Yangtze River Delta and beyond.

Industry Implications

The narrow price band results from a tug-of-war between upstream costs and downstream demand. PTA and MEG prices have lacked directional momentum, offering weak cost support, while downstream weavers operate at moderate-to-low utilization, limiting acceptance of higher raw material prices. In this context, price divergence becomes a natural response: large firms leverage financial strength to maintain higher quotes and protect margins, while smaller players prefer volume-based pricing to secure cash flow.

For buyers, the 300-yuan spread creates negotiation room. Larger orders can target lower-priced suppliers like Rongsheng or Juxing, while using higher quotes as leverage. However, if raw material prices spike, low quotes may vanish quickly, so restocking timing should align with PTA futures trends.

For exporters, stable POY prices support continuity in export quotations, but currency fluctuations and freight costs remain larger variables. August marks a transition from off-season to peak season, with overseas orders typically emerging late in the month. The current price range can serve as a reference anchor for forward contracts.

Practical Recommendations

For Buyers - Focus on sources in the 8,250-8,300 yuan/ton range, such as Rongsheng and Juxing, and consider phased purchasing to average costs. - Use the price spread to negotiate with high-quote suppliers like Tongkun for better payment terms or freight discounts rather than pure price cuts. - Monitor PTA and MEG futures; if upstream signals a sustained rally, lock in current low prices promptly.

For Exporters - Base export contracts on the current average POY price of 8,350 yuan/ton and include price adjustment clauses to hedge against raw material volatility. - Watch RMB exchange rate trends; if the dollar strengthens, consider early settlement to lock in profits. - Use the August lull to negotiate long-term supply agreements with factories, securing favorable FOB terms in preparation for peak season.