On August 6, public quotes for melt-spun polyester FDY 150D/96F semi-dull AA-grade revealed a telling detail: the same specification was priced at 8500 CNY/ton in Hangzhou, while in Shaoxing, two mills quoted 8500 and 8410 CNY/ton respectively. The 90-yuan spread may seem minor, but it reflects the subtle game-playing across the polyester filament chain during the off-season.
Background
The quotes came from three representative producers: Rongsheng Petrochemical, Zhejiang Juxing Chemical Fiber, and Zhejiang Jiabao New Fiber. Rongsheng, an industry leader, kept its Hangzhou base quote at 8500 CNY/ton. In Shaoxing, Juxing matched that level, while Jiabao offered 8410. All three use melt-spinning and produce identical specs, yet prices did not align.
This divergence is no accident. Shaoxing, a major chemical fiber cluster, hosts numerous mills with concentrated capacity, intensifying competition. When leaders hold prices in Hangzhou, smaller Shaoxing mills often concede small discounts to win orders. Such regional gradients become pronounced in off-seasons, as demand shrinks and mills lose pricing power.
Notably, the 8410 quote is about 1% below the mainstream, usually indicating higher inventory pressure or a customer base skewed toward price-sensitive small weaving mills. For buyers, this spread alone may not alter decisions, but for large volumes, saving 90 yuan per ton still yields meaningful cost optimization.
Industry Impact
From an industry perspective, this spread reflects a typical 'weak equilibrium' in the FDY market. Upstream PTA and MEG prices have fluctuated little recently, offering limited cost support, while downstream weavers maintain low raw-material inventories due to insufficient orders. In such contexts, mills' pricing power depends more on their own cash-flow positions than on market demand.
For Shaoxing mills, the low-price strategy is a double-edged sword: it accelerates destocking and capital recovery in the short term, but may compress margins and even trigger regional price wars. For Hangzhou's leading enterprises, price stability helps anchor market expectations but risks losing price-sensitive customers to Shaoxing.
This regional split also signals that capacity consolidation in the polyester filament sector is far from complete. In weak demand, high-cost, inefficient capacity will feel pressure first. Buyers can compare quotes more calmly, but should be wary of quality or service risks behind low prices; mills must manage inventory and cash flow meticulously to avoid a vicious cycle of forced discounting.