Major events of Chinese polyester market in 2025 and scenarios in 2026

The polyester industry has etched a brilliant development footprint driven by both policy guidance and market trends in 2025. This year, the industry witnessed a historic breakthrough as the PTT technology broke foreign monopolies, while also experiencing a pattern reshaping brought by the concentrated release of PTA production capacity. It clarified its transformation direction amid the seven ministries' steady growth policies and explored new opportunities amid trade changes such as India's revocation of BIS certification. A series of key events have collectively outlined the core context of the polyester industry in 2025. The followings are a collation and presentation of the major events influencing the industry's direction this year:

Sinopec Yizheng successfully puts 500kt/year PET bottle chip plant into operation

On January 17, it was reported that China's first 500kt/year bottle-grade chip plant, constructed using medium-viscosity polyester technology, was successfully put into operation at Sinopec Yizheng. The project adopts the most advanced short-flow production process independently developed by Sinopec, marking a new technological breakthrough in China's non-fiber polyester sector. With this, all three projects of Yizheng's first phase of 850kt/year functional polyester new materials units have been completed and put into operation.

Huilong New Materials plans to build a 100,000-ton green fiber project in Indonesia

On February 10, Huilong New Materials convened the 16th Meeting of the 4th Board of Directors and the 16th Meeting of the 4th Supervisory Board, at which the proposal for investing in and constructing a project in Indonesia was reviewed and approved.

The company intends to utilize its own funds or self-raised funds to construct a project with an annual output of 30,000 tons of recycled colored fibers and 70,000 tons of dope-dyed fibers in Indonesia through its wholly-owned subsidiary GWILL International Investment Co., Ltd. and its grandchild subsidiary. The total investment of the project shall not exceed RMB 500 million (the final total investment shall be subject to the actual investment). After the project reaches its designed production capacity, it is expected to achieve annual sales revenue of RMB 1.2 billion and a net profit of RMB 180 million.

Tongkun Group Co., Ltd. and its subsidiaries sign framework agreement on property and land recovery with Tongxiang Economic and Technological Development Zone Infrastructure Construction Investment Co., Ltd.

On March 21, 2025, Tongkun Group Co., Ltd. ("Tongkun Group") and its subsidiaries, namely Tongkun Group Zhejiang Hengsheng Chemical Fiber Co., Ltd., Tongxiang Hengchang Paper & Plastic Co., Ltd., and Tongxiang Hengyi Paper & Plastic Co., Ltd., signed the "Framework Agreement on Property and Land Recovery between Tongxiang Economic and Technological Development Zone Infrastructure Construction Investment Co., Ltd. and Tongkun Group Co., Ltd. and Its Subsidiaries" with Tongxiang Economic and Technological Development Zone Infrastructure Construction Investment Co., Ltd.

PetroChina's aromatics unit expands capacity & 2 million ton/year PTA project commencement

On March 22, the centralized commencement ceremony for major projects in Xinjiang Autonomous Region during the first quarter of 2025 was held. Two key aromatics industry chain projects with a total investment of RMB 6.492 billion - the aromatics unit capacity expansion and raw material supporting renovation project, and the new 2 million ton/year PTA project - were launched at the sub-venue of key aromatics industry development projects of PetroChina Urumqi Petrochemical Company.

Jingwei New Fiber restarts 450kt/year long-idled polyester plant

At the end of 2023, Fujian Jingwei New Fiber's 450kt/year polyester production line was fully shut down. In April 2025, Jingwei New Fiber restarted its 200kt/year staple fiber unit, and in October, the 250kt/year filament unit was also put back into operation. Behind this is a new industrial path initiated by Relian Group through "financial derivatives empowerment". Fujian Huixing Jingwei was established after the original Fujian Jingwei New Fiber was acquired by Huixing Industry (a subsidiary of Relian Group) in 2025, which organized the restart of the long-idled polyester production facilities of the former Jingwei New Fiber.

Wankai New Materials: plan to invest RMB 2.019 billion to build overseas PET bottle chip production base in Indonesia

On April 21, Wankai issued an announcement regarding its overseas production base investment. The announcement stated that the company held its 21st meeting of the second board of directors on April 18, 2025, and reviewed and approved the "Proposal on Overseas Production Base Investment."

To implement the company's international strategic layout and build a global industrial and sales service network around core markets in overseas regions, the company plans to invest in constructing an overseas PET bottle chip production base in Indonesia through its wholly-owned subsidiary, Chongqing Wankai New Materials Technology Co., Ltd. The project has a planned annual capacity of 750,000 tons, with a total investment of RMB 2,019.702 million (approximately USD 284.4651 million, converted at an exchange rate of 7.1 RMB to USD. The actual investment amount will be based on the amounts approved by relevant authorities in China and Indonesia and the exchange rate at the time of investment).

Rieter acquires Barmag

On May 7, Rieter Group-a global leader in staple fiber machinery manufacturing-and OC Oerlikon Group (Switzerland) officially signed an agreement to complete the acquisition of OC Oerlikon Barmag's business for a share purchase price of CHF 713 million (approximately USD 870 million).

Sanfame puts 1.5 million ton/year green multifunctional bottle chip project into operation

On May 8, Sanfame (600370) announced that its wholly-owned subsidiary, Jiangsu Xingye Plastic Chemical Co., Ltd., has officially put the 1.5 million ton/year green multifunctional bottle chip project into operation. The project utilizes advanced production technology and equipment, including two sets of the world's largest single-line 750kt/year PET polymerization units, aiming to improve production efficiency, reduce energy consumption, and minimize emissions, aligning with green and environmentally friendly production principles.

Zhengdakai commissions 600kt/year MEG project

As a flagship initiative of the Western Development Strategy and East-West collaboration, the Zhengdakai Advanced Intelligent Manufacturing Industrial Park in Xuanhan County is progressing steadily. Marking the region's largest investment in natural gas fine chemicals, the project successfully commissioned a new 600kt/year syngas-to-MEG unit in mid-May, achieving successful output.

Hengyi Energy Technology (Turpan) Co., Ltd. 2.4 million mt/year coal-based MEG project for high-quality fiber production has been publicly announced.

In June, Hengyi Energy Technology (Turpan) Co., Ltd. released the public notice for its 2.4 million mt/year coal-based MEG project for high-quality fiber production. The proposed site is located within the Coal-Based New Materials Circular Industrial Park of Turpan Economic Development Zone, bounded by vacant land to the east, the Southern Mining Area Resource Road to the west, Aiding Lake Coal Mine Area II to the south, and the planned S346 provincial road to the north. The land is designated for industrial use under planning regulations. The project will include a 2.4 million mt/year coal-based MEG facility, along with supporting production units, auxiliary facilities, utilities, and related infrastructure for production and operational services.

Tongkun Youshun's project successively start operation

On June 28, the first 300,000-ton unit of Anhui Youshun New Materials Co., Ltd.'s annual 1.2 million-ton lightweight, comfortable functional differentiated fiber project achieved successful ignition; in November, the second 300,000-ton unit was commissioned. As a wholly-owned subsidiary of Zhejiang Tongkun Group-a global leader in the chemical fiber industry-Anhui Youshun New Materials settled in Lujiang through investment promotion.

Shenghong invited to UN Conference to share innovative practices in green development

From July 15 to 16 (local time), the Side Event on Global Energy Interconnection of the UN High-Level Political Forum on Sustainable Development was held at the UN Headquarters in New York. Shenghong Holdings Group was invited to attend the conference and share its innovative practices in green development.

Xinfengming enters strategic cooperation with Leaf Biotech to explore high-end bio-based fiber fabrics

On July 17, the strategic cooperation signing ceremony between Xinfengming Group and Leaf Biotech was successfully held. This cooperation marks the launch of a new chapter of collaborative innovation between Xinfengming Group and Leaf Biotech, which will inject innovative momentum into promoting the green transformation of the global textile fiber industry and lead a new direction for the sustainable development of the industry.

Zhengzhou Commodity Exchange: Adjusts designated PTA delivery brands and inspection-exempt brands

On August 18, ZCE issued the "Announcement on Adjusting Designated PTA Delivery Brands and Inspection-Exempt Brands". After research and decision: Revoke the qualifications of Sinopec Yangzi Petrochemical Co., Ltd. and Jialong Petrochemical Fiber Co., Ltd. as designated PTA delivery brands and inspection-exempt brands; Revoke the designated PTA delivery brand qualifications of Sinopec Shanghai Petrochemical Co., Ltd., Sinopec Luoyang Branch, Oriental Petrochemical (Shanghai) Co., Ltd., and Ningbo Liwan Polyester Materials Co., Ltd.; Suspend the designated PTA delivery brand qualification of Hanbang (Jiangyin) Petrochemical Co., Ltd. The above-mentioned matters shall take effect from the date of issuance of this announcement.

ZCE: Promotes overall opening-up of polyester sector products as specific varieties

A responsible person from Zhengzhou Commodity Exchange (ZCE) stated at the 2025 China (Zhengzhou) International Futures Forum on August 19 that the exchange is actively advancing the overall opening-up of polyester sector products-including PTA options, PX futures and options, staple fiber futures and options, and PET bottle chip futures and options-as specific varieties.

Currently, nearly 800 overseas clients have opened accounts with ZCE, hailing from 33 countries and regions including China Hong Kong, Singapore, the United Kingdom, and the United Arab Emirates.

Signing of Jiujiang Petrochemical's 3 million ton/year PTA project & groundbreaking mobilization for the 1.2 million ton/year PFY project

On July 23, Jiujiang Economic and Technological Development Zone (JETDZ) held the 7th batch of project signing activities in 2025. The event involved 10 industrial projects covering key sectors such as petrochemical refining, new energy and new materials, and high-end equipment manufacturing. The successful signing of these projects will further optimize and upgrade the industrial structure, injecting strong momentum into the high-quality development of JETDZ. Among them, the signing of Jiujiang Petrochemical's 3 million ton/year PTA project is a key initiative by Sinopec Group to build an aromatics industry base in central China.

On August 27, JETDZ held a groundbreaking mobilization meeting for the 1.2 million ton/year PFY project, marking the completion of the "last mile" of the petrochemical aromatics industrial chain in JETDZ. It is reported that Huaxiang Intelligent Fiber is a wholly-owned subsidiary of Huaxiang (Jiangxi) Holdings Development Co., Ltd. The 1.2 million ton/year PFY project, invested and constructed by Huaxiang (Jiangxi) Holdings Development Co., Ltd., relies on the integrated PX-PTA-PET industrial chain in JETDZ's Petrochemical Industrial Park and will be implemented in two phases. Phase I includes a 400,000 ton/year integrated spinning-functional fiber project, focusing on the production of high-end products such as fiber-grade PET fiber chips and functional fibers.

Yangzhou Tinfulong Group Co., Ltd. officially listed on the Main Board of Shanghai Stock Exchange

On August 8, Yangzhou Tinfulong Group Co., Ltd. was officially listed on the Main Board of the Shanghai Stock Exchange (SSE). In this Initial Public Offering (IPO), Tinfulong issued 40.01 million new shares to the public for the first time at an offering price of RMB 23.60 per share. As a well-known enterprise in the polyester staple fiber sector, Tinfulong has developed a diverse range of differentiated composite fiber products by relying on its flexible production lines and R&D capabilities for high-performance products. It has also emerged as a leading enterprise in the segmented industry of recycled colored polyester staple fiber.

ZCE: designation of designated PSF delivery brands, inspection-exempt brands, and PSF futures delivery warehouses

On September 5th, the ZCE issued theAnnouncement on Designating Polyester Staple Fiber Delivery Brands and Inspection-Exempt Brands. Shanli Chemical Fiber was designated as a PSF delivery brand, and 10 brands were named PSF inspection-exempt brands, namely: Yizheng Chemical Fiber, Jiangyin Xinlun Chemical Fiber, Xinfengming (Zhonglei), Xinfengming (Xintuo), Fujian Jinlun, Huaxicun, Suqian Yida, Fujian Yijin, Hengyi High-Tech, and Shaoxing Hengming.

On the same day, ZCE also released the Announcement on Designating Polyester Staple Fiber Futures Delivery Warehouses. Four enterprises were officially designated as PSF futures delivery warehouses, including: Zhangjiagang Free Trade Zone Huarui Logistics Co., Ltd., Hangzhou Lingang Logistics Co., Ltd., Zhangjiagang Free Trade Zone Foreign Investment Service Co., Ltd., and Jiangyin Xiefeng Cotton & Linen Co., Ltd.

Zhengzhou Commodity Exchange: designates specific bottle chip delivery brands

On September 23, the Zhengzhou Commodity Exchange issued the "Announcement on Designating Specific Bottle Chip Delivery Brands," designating the "Billion" brand by FujianBillion Polymerization Fiber Technology Industrial Co., Ltd. as a specified bottle chip delivery brand.

Yulong Petrochemical advances integrated complex; 900kt MEG unit starts pp

Phase I of the Yulong Island Integrated Refining and Chemical Project utilizes imported crude oil to establish a major complex with annual capacities of 20 million tons of refining, 3 million tons of mixed aromatics, and 3 million tons of ethylene.

Project progress:

September 25, 2024: The 10-million-ton Refining Series II unit began production, successfully outputting aviation kerosene and diesel, marking the project's official transition from construction to operation.

November 2024: The Atmospheric and Vacuum Distillation Unit (the project's "head" unit) was successfully commissioned.

December 2024: Proprietary pyrolysis gasoline hydrogenation catalysts (stages 1 & 2) achieved successful industrial application in the new ethylene project.

April 22, 2025: The 600kt/year ABS unit achieved a successful one-time startup, fully linking all five major units (PBL polymerization, HRG polymerization, coagulation/dewatering, SAN polymerization, and compounding/extrusion).

Late September 2025: The new 900kt/year MEG unit commenced feeding for trial operation.

First closed-Loop of bonded delivery for export-oriented PTA via truck/shipping–Breakthrough achieved in institutional opening of futures delivery

On October 16, 2025, 240 tons of Purified Terephthalic Acid (PTA) marked with "Yisheng Dahua" were loaded into containers, destined for Kuantan Port in Malaysia. This represents the first batch of achievements under the innovative PTA bonded delivery system designed by the Zhengzhou Commodity Exchange to align with the net export characteristics of PTA. The initiative pioneers a new path for China's futures market to serve export-oriented commodity trade, and holds milestone significance for enhancing the attractiveness and cohesion of China's futures market, as well as strengthening the international influence of bulk commodity prices.

World's largest single-train PDO/PTT integrated plant commences production

On October 19, Ningbo Juhua Chemical & Science Co., LTD.'s 150,000 ton/year PDO/PTT integrated plant successfully completed commissioning and produced the first batch of qualified products, achieving a successful one-time start-up. The project's smooth commissioning marks China's breakthrough in breaking the long-term foreign technological monopoly in the field of new polyester materials.

Hengyi Green New Materials to construct 300kt/year recycled new materials (BHET) industrial demonstration project in Jingzhou

On October 31, according to the announcement released by the Jingzhou Municipal Bureau of Ecology and Environment (Hubei Province), the environmental impact assessment (EIA) information of Hubei Hengyi Green New Materials Co., Ltd.'s 300kt/year recycled new materials industrial demonstration project was publicly disclosed online for the first time.

As indicated in the publicly released project summary, Hubei Hengyi Green New Materials Co., Ltd. plans to occupy 100 mu (approximately 66,667 square meters) of land in the New Energy and New Materials Industrial Base of Jiangling Development Zone to construct the 300kt/year recycled new materials industrial demonstration project.

The construction content includes one new workshop, four warehouses, one power center, as well as auxiliary facilities such as production auxiliary buildings, tank farms, fire pump rooms, emergency pools, and fire water tanks. Upon completion, the project will have an annual output of 300,000 tons of bis(2-hydroxyethyl) terephthalate (BHET).

Tongkun Co., Ltd.: plans to invest RMB 5.6 billion in 1.2 million ton/year green differentiated fiber project

In October, Tongkun Co., Ltd. announced that its wholly-owned subsidiary, Hengyong New Materials, intends to invest RMB 5.6 billion in constructing a 1.2 million ton/year green differentiated fiber project, which will be implemented in two phases. Phase I will involve the construction of 2 sets of PFY production equipment with a combined annual output of 600,000 tons, along with texturing workshops. Phase II will include another 2 sets of PFY production equipment with a total annual output of 600,000 tons. The project has a construction period of 38 months, with the expected start date of November 1, 2025. Upon stable operation, the project is expected to achieve an annual operating income of RMB 9.769 billion and a total profit of RMB 527 million. Potential risks include approval-related risks, implementation risks, market risks, process technology risks, construction condition risks, financial risks, and safety management risks.

Notice from the Raw Materials Industry Department of the Ministry of Industry and Information Technology on convening a forum on the industrial development of PTA and PET bottle chip

On October 30, to prevent and resolve inward-looking competition in the PTA and PET bottle chip industry promote the stable operation of the sector, the department plans to convene a Forum on the Industrial Development of PTA and PET bottle chip industry at 9:00 AM on Wednesday, October 29, 2025, in Conference Room C216 of the Xidan Office Area of the Ministry of Industry and Information Technology.

Department of Chemicals and Petrochemicals of India issues a notification to revoke the BIS certification

As of November 12, 2025, the Department of Chemicals and Petrochemicals of India has issued a notification to immediately revoke the BIS certification for the following products: PTA, MEG, 100% polyester staple yarn, polyester industrial yarn (IDY), PSF, polyester FDY, polyester POY, polyethylene materials for molding and extrusion, ABS, PP materials for molding and extrusion, PVC homopolymer, EVA copolymer, polyurethane, and polycarbonate.

Zhongtai fully launches construction of 250kt/year PFY project

In November, Xinjiang Zhongtai Polyester Fiber Materials Co., Ltd. has recently completed all approval procedures for its 250kt/year direct-spunPFY project, officially entering the substantive construction phase.

Polyester industry scenarios in 2026

With global economic demand softening in recent years, the market once anticipated an extended downcycle or even stagnation. However, our latest research shows that China's polyester value chain continues to grow, and certain segments are accelerating again. The market remains dynamic-and full of structural shifts.

1. Structural Adjustment in the Expansion Cycle

Beginning in 2026, the polyester value chain is expected to enter a new phase of capacity rebalancing:

·PX capacity is likely to remain tight in 2026, potentially forming a bottleneck for downstream growth, while PTA will continue to operate cautiously on a phased basis.

·By 2027, however, the market landscape may reverse: the long-weak PTA sector could enter a cyclical recovery, while PX may face short-term supply pressure.

2. MEG: Entering a New Expansion Cycle

Between 2026 and 2028, a new wave of domestic and overseas MEG projects is scheduled for commissioning, reshaping global supply-demand patterns and cost competitiveness.

3. Polyester: Another Shift in Product Structure

From 2026 onward, the focus of polyester capacity placement will shift again:

·Major filament producers are expanding across Zhejiang, Jiangsu, Xinjiang, Fujian, and Anhui, with production growth expected to rebound from the bottom.

·Polyester staple fiber, after two years of steady operation, may see renewed million-ton scale expansion.

·PET bottle chip additions are nearing completion, and industry spreads may experience partial recovery.