In the first week of July, the textile chemicals industry faced a triple whammy of pressures. Against a backdrop of tightening supply, the price of silicone DMC actually fell rather than rose, dropping from 14,700 yuan per metric ton at the beginning of the month to 13,900 yuan per metric ton; the propylene oxide (PO) industry was mired in losses; the off-season for textiles began in earnest in July, causing the chemical fiber sector to plummet across the board, with Xinxiang Chemical Fiber hitting its daily trading limit down. Meanwhile, the Textile Printing and Dyeing Auxiliaries Technology Innovation Forum opened in Keqiao, Shaoxing, on July 11-as the industry shifted its focus toward both self-rescue and upgrading.
一,Silicone Production Cuts Do Not Guarantee Prices
A silicone industry meeting held in early July made it clear that the pace of supply contraction would continue in July, with monomer producers strictly adhering to the 40% production cut target. However, the market did not respond favorably. According to data from Business Society, the benchmark price for silicone DMC stood at 13,900 yuan per metric ton on July 10, down 5.44% from 14,700 yuan per metric ton at the beginning of the month. The unified guideline price set at the conference-14,000 yuan per metric ton for DMC with bank acceptance-held for only one week before being undercut by actual market transaction prices. On July 11, Shandong Dongyue Organic Silicon Material Co., Ltd. quoted a market price of 13,200 yuan per metric ton, while Luxi Chemical Group Co., Ltd. quoted 14,500 yuan per metric ton, though actual transactions were significantly lower. The root cause of the failure to maintain prices despite production cuts lies in the downstream sector. July is traditionally a slow season for the textile industry; with insufficient end-user apparel orders, weaving mills are making sporadic purchases based on immediate needs, and there is little willingness to restock in large quantities. Although monomer producers have controlled supply through production cuts, bearish expectations have already taken hold in the mid- and downstream sectors-buyers tend to buy when prices rise but not when they fall, and a wait-and-see attitude toward procurement is driving prices down.
二,Severe Losses in Propylene Oxide: With the Premium Gone, Only Efficiency Competition Remains
Propylene oxide (PO) is the chemical product that best reflects the shift in the chemical industry cycle this week.In the first half of the year, PO experienced a textbook-style "sharp rise and sharp fall": From March to April, geopolitical tensions in the Middle East drove PO prices up by 60% to 13,300 yuan per metric ton, but prices subsequently fell in stages due to insufficient demand. By July 3, the market price in Shandong had fallen to just 7,800 yuan/metric ton, with industry margins ranging from -752 to -1,365 yuan/metric ton-the entire industry was operating at a loss, with the exception of a few leading integrated producers. Data from Longzhong Information shows that domestic PO production capacity reached 8.88 million metric tons per year (+14.43%) in the first half of the year. Approximately 900,000 metric tons of new capacity is set to come online in the second half of the year, bringing total capacity to over 10.32 million metric tons by year-end. On the demand side, the operating rate for polyether production stands at only 53%, making it difficult to reverse the pattern of weak supply and demand in the short term.
Noteworthy structural changes: BinHua Co., Ltd. saw its first-half earnings grow by 208%, driven by its integrated business model (chlor-alkali + PO, with a propylene self-sufficiency rate exceeding 80%). Weixing Chemical achieved growth of 118–155% thanks to its diversified industrial chain and supply chain strategy. The key factor in the second half will no longer be which company sells PO at the highest price, but rather which company can keep costs under control-the industry is shifting from scale-based competition to efficiency-based competition.
三,National Forum on Technological Innovation in Textile Printing and Dyeing Auxiliaries Opens
On July 11, the 2026 National Forum on Technological Innovation in Textile Printing and Dyeing Auxiliaries opened in Keqiao, Shaoxing. Hosted by the China Institute of Consumer Chemicals and the National Engineering Research Center for Surfactants, the conference took place at a time when the industry was facing its most challenging period. The shift toward green and environmentally friendly practices is irreversible. Fluorine-free water repellents, bio-based surfactants, and low-temperature pretreatment auxiliaries have become the dominant themes. Some companies have already secured SGS's first-ever global "PFAS Not Detected" green label certification, and domestically developed fluorine-free water-repellent technology is shifting from playing catch-up to taking the lead.
Structural divergence is intensifying. Low-end general-purpose auxiliaries are mired in vicious price competition due to product homogeneity, with profitability under sustained pressure; meanwhile, high-end functional auxiliaries-such as those for ultra-fine fibers and antibacterial and antiviral applications-remain heavily reliant on imports.
四,International News
1. Progress on EU-Wide Restrictions on PFAS：The European Chemicals Agency's (ECHA) Committee for Socio-Economic Analysis (SEAC) has published a draft opinion supporting the implementation of EU-wide restrictions on PFAS. The Committee for Risk Assessment (RAC) estimates that such restrictions could reduce PFAS emissions by approximately 96% over 30 years. The restrictions will affect multiple industries, including electronics, textiles, medical devices, and packaging.
2. Countdown to the PPWR Packaging Regulation：The EU's new Packaging Regulation (PPWR) sets clear limits for PFAS in food contact packaging, with August 12, 2026, considered the industry's deadline. ecopv-eu.com
3. PFHxA Ban Takes Effect in October：Starting in October 2026, the sale of various everyday products containing PFHxA-including textiles, leather goods, cosmetics, and waterproofing sprays-will be prohibited in the EU.
4. France's PFAS Ban Is Now in Effect：France implemented a nationwide PFAS ban effective January 1, 2026, covering clothing, footwear, and waterproofing products containing PFAS. This is widely seen as a precursor to broader EU regulations.
If you need chemicals such as textile auxiliaries, please contact us.
Phone：+(86)-18660278562
Email：info@innodyeschem.com, nancy@innodyeschem.com
