As Peak Demand Season Approaches, the Textile Market in China Will Improve

August 24, News

According to price monitoring, in the 33rd week of 2025 (8.18-8.22), among the commodities in the textile sector, there were 5 types of products that saw a week-on-week increase in prices. The top 3 products with the highest price increase were polyester staple fiber (1.40%), PTA (1.08%), and polyester FDY (0.28%).

Compared to the previous period, there were 2 types of products that decreased in price. The top 2 products with a price decrease were 21S cotton yarn (-0.45%) and 32S cotton yarn (-0.21%).

This week's average change rate is 0.14%.

Fundamentals Show Gradual Improvement as PTA Industry Chain Sees Slight Recovery

The overall fundamentals of PTA have improved, with slightly tighter supply of PX from overseas markets on the cost side. Meanwhile, expectations are rising for increased demand as new PTA units in China begin commissioning, further boosting prices. As a result, PX prices have been steadily strengthening.

Meanwhile, PTA production facilities in East and South China have delayed their planned restarts or remain offline due to operational issues, leading to an optimized supply structure within the region. On the downstream side, polyester demand remains robustly steady, with production and sales volumes continuing to expand.

Adding to this positive backdrop, recent improvements in broader market sentiment—driven by favorable macroeconomic factors—have collectively pushed PTA market prices slightly higher. As of August 22, the average PTA price in East China stood at 4,771 CNY per ton, up 1.08% from the beginning of the week.

As costs continue to rise, downstream polyester factories have seen their confidence boosted, leading to synchronized price hikes across industries like polyester filament and staple fiber. Meanwhile, downstream weaving companies are growing increasingly reluctant, opting mainly for essential restocking to meet immediate needs. Since August, with the easing of tariffs, orders for autumn/winter fabrics and export-oriented home textile products have gradually begun to pick up. In the Jiangsu and Zhejiang regions, the operating rate in the mainstream weaving industry has stabilized around 52%. However, large-scale, high-value orders remain scarce. Against this backdrop, textile manufacturers are prioritizing cash flow recovery, making it difficult to witness a significant rebound in overall demand.

Downstream Wait-and-See Sentiment Strong, Cotton Textile Market Fluctuates and Consolidates

On August 12, China and the U.S. simultaneously announced a 90-day extension of the tariff suspension period, with the additional tariffs remaining unchanged (China imposes an additional 25% on imported U.S. cotton, and the U.S. imposes an additional 30% on imported Chinese textiles and apparel). Driven by this factor, Zhengzhou cotton futures saw a significant rebound, leading to an increase in the spot market. However, the U.S. imposing high tariffs on most of its trading partners has weakened future imports of textiles and apparel, and the downstream yarn market remains cautious in purchasing. Actual transactions still involve price concessions, and some companies have high inventories, with textile enterprises showing slightly less confidence in the arrival of the peak season. It is still necessary to pay attention to the supply situation before the new cotton comes to market and the actual order situation downstream.

Analysts believe that in the coming period, as the traditional peak season for the textile market approaches, it is expected that the intention of enterprises to purchase cotton raw materials will increase. The PTA industry chain market is experiencing a phased improvement in supply and demand, with increased support from the cost side. Moreover, with the approach of the traditional peak demand season known as "Golden September and Silver October," the rigid demand orders for early winter home wear and bedding fabrics will be gradually released. At the same time, autumn clothing orders will enter a concentrated shipping period, which will collectively drive a sustained recovery in the overall market atmosphere. It is expected that the overall textile market in China will improve.