Shengze-Jiaxing Polyester Market Under Pressure: Oil Price Rally Fails to Boost Demand Amid High Inventories

The positive signal from rising international oil prices overnight failed to transmit to the downstream polyester market. On May 13, the Shengze-Jiaxing textile raw material market showed a divergence pattern: oil prices rose, polyester filament yarn prices stabilized, but trading remained sluggish. Most polyester factories kept ex-factory prices flat to encourage shipments, while a few lowered prices. Downstream buyers were cautious, resulting in limited overall transaction volumes.

This phenomenon reflects accumulated contradictions in supply and demand: polyester factory inventory pressure remains high, while weaving and texturing enterprises show low purchasing willingness, especially for POY, adopting a conservative 'small-lot, repeated orders' strategy. This signals pessimistic short-term expectations across the supply chain.

Product Differentiation: FDY Fine Denier and DTY Network Yarn Stand Out

Despite the overall dull market, some specifications offer structural opportunities. FDY 20D/24F continues to sell well, mainly for high-density polyester taffeta, which after oil-gloss calendering and other finishing, can be used both as lining and face fabric, attracting market attention. FDY 128D semi-dull yarn moves well for long-fiber oxford fabric, and bright FDY 150D sees decent sales. FDY black yarn for water-jet imitation memory fabric also has some flow.

On the DTY side, 75D/72F, 75D/144F network, 100D/144F, and 150D/288F also show sales support. Common features of these products: fine denier, differentiation, and functionality, indicating that demand for lightweight, high-density, and imitation memory fabrics from the end-use apparel and home textile markets remains, though purchasing rhythm is suppressed by the macro environment.

Yarn Market: Cotton Yarn Stable, Polyester-Cotton Blends Edge Up

In the yarn segment, pure cotton yarn prices were generally stable, with demand relatively good for 32s and J21s, mainly used for air-jet nylon-cotton fabric series. Among blends, polyester-cotton 65/35 saw individual price upticks, but 80/20 and 90/10 remained stable. Polyester-viscose 65/35 and 32s/2 had moderate trading volumes, with prices adjusting steadily.

Pure polyester yarn prices were temporarily stable, but demand for 45s and 32s was not large, with even less trading for other specs. Polyester staple fiber averaged around 8,500 CNY/ton. Rayon yarn 10s and 30s saw decent shipments, with prices in adjustment mode, and viscose staple fiber averaged about 13,900 CNY/ton. The outlook for rayon yarn is expected to continue moderate adjustment.

Practical Recommendations

For Buyers - Current polyester yarn prices are at a cyclical low, but factory inventory pressure leaves room for further discounts. Consider batch buying on dips to avoid locking in high prices with large one-time orders. - FDY fine denier (e.g., 20D/24F) and DTY network yarn have relatively stable demand. Prioritize short-term contracts for these specifications to mitigate supply disruption risks. - Monitor PTA and MEG price trends. If upstream raw materials decline continuously, polyester yarn prices may follow. At that point, increase purchasing volumes.

For Foreign Trade Companies - Overseas orders for differentiated fabrics (e.g., high-density polyester taffeta, imitation memory fabric) remain. Inquire with Shengze-Jiaxing partner mills about quotes for FDY black yarn and DTY network yarn. - During the rayon yarn price adjustment period, consider negotiating long-term agreements with suppliers to lock in costs at current average levels for the next 2-3 months. - Closely watch international oil prices and exchange rate fluctuations. If oil prices rise but polyester yarn prices do not follow, export product margins will expand temporarily. Accelerate order-taking during this window.