On August 28, three mills in Weifang, Shandong, quoted divergent prices for the same specification of polyester yarn, with a spread of 550 yuan per ton (11,750-12,300 yuan/ton). This divergence is not accidental; it reflects the real conditions of the polyester yarn supply chain under the combined pressure of feedstock fluctuations and weak demand. Different cost control, inventory levels, and customer structures are being amplified by price signals.
Background
On August 28, Weifang Honghua Textile, Guanjie Textile, and Runfengda Textile quoted 12,200 yuan/ton, 12,300 yuan/ton, and 11,750 yuan/ton respectively for 32S large-chemical ring-spun polyester yarn (natural white, first grade, single ply). All three are located in Weifang, with identical delivery locations and specifications, yet their quotes clearly fall into three tiers. Runfengda's quote is 550 yuan lower than Guanjie's and 450 yuan lower than Honghua's.
Such price divergence in the same region and specification typically stems from three variables: first, feedstock procurement timing—if raw materials were locked in when PTA was low, cost advantages can directly translate into pricing flexibility; second, inventory pressure—enterprises with high inventory tend to offer discounts to free up cash; third, customer structure—companies with a high proportion of long-term contracts maintain firmer quotes, while those relying on spot orders adjust to market conditions.
According to industry public data, polyester staple fiber prices have been trading in a narrow range recently, with ample PTA supply but insufficient downstream demand. The yarn segment is caught in a squeeze. Weifang, as an important production base for cotton and chemical fiber yarn in Shandong, has price movements that hold certain significance for the surrounding market. The widening spread may indicate that some small and medium enterprises are cutting prices to exchange for cash flow, while larger companies attempt to maintain their pricing systems.
Industry Impact
For downstream buyers, the price divergence opens up bargaining space. The current polyester yarn market is generally quiet, with weaving mills operating at low rates and purchasing on a need-to-basis. In this context, the emergence of low-priced goods may accelerate downstream price pressure, forcing other spinners to follow suit. However, low prices often come with stricter payment terms or reduced service, so buyers must comprehensively evaluate supplier stability and quality consistency.
For spinners, the 550 yuan spread is close to the per-ton profit of some enterprises. If feedstock costs remain unchanged, low-price companies may hover near breakeven, while high-price companies retain some profit margin. This divergence will prompt companies to re-examine their cost structures and product positioning. On one hand, small factories lacking cost advantages may be forced to exit some conventional varieties and shift to differentiated yarns; on the other hand, companies with futures hedging capabilities or raw material inventory management will gain greater pricing initiative.
From the perspective of chain transmission, the loosening of polyester yarn quotes will gradually pressure upstream polyester staple fiber and PTA. If the yarn segment continues to make concessions, staple fiber factory order prices will also face downward pressure, affecting the processing fees in the PX-PTA chain. For textile enterprises reliant on exports, exchange rate fluctuations and the pace of overseas demand recovery remain the biggest variables; domestic price divergence will not alter the pricing logic of export orders in the short term.