Super Typhoon "Bavik" Approaches – Port Shutdown Alert in East & South China Dear Valued Customers and Partners, Under the influence of Super Typhoon "Bavik" – one of the strongest typhoons this year – the southeastern coast of China is facing severe weather challenges. According to the Central Meteorological Observatory, Typhoon "Bavik" currently has maximum sustained winds of 16-grade (55 m/s) near its center and is moving northwest at a speed of 15–20 km/h toward the northeastern coast of Taiwan. It is expected to make a second landfall along the coast of Zhejiang and Fujian in the coming days. The typhoon's wind and rain coverage is extremely broad, directly impacting key shipping lanes including the East China Sea, the southern Yellow Sea, and the Taiwan Strait, while bringing sustained wind and rain disruptions to major foreign trade ports such as Shanghai, Ningbo, and Yantian. I. Emergency Port Operation Adjustments Due to typhoon prevention measures, major terminals in Shanghai and Ningbo have implemented empty container lashing and securing operations starting July 10. During this period, empty container pickup services are suspended, and gate truck traffic efficiency has significantly decreased, which may result in cargo failing to enter the port on time and missing scheduled vessel cut-offs. Urgent Recommendations: Please immediately review all pending empty container pickup orders and arrange trucking as early as possible to complete the entire process of pickup, stuffing, and loaded container delivery to the port; For shipments with approaching cut-off dates or tight schedules, prioritize processing and ensure empty containers are picked up before the securing operations begin on July 10; Empty containers not picked up after July 10 will remain unavailable until the full securing work is completed. The resumption timeline is uncertain, and it is highly likely that these shipments will miss their original vessel schedules. II. Multimodal Transport Also Affected Due to the typhoon and strong wind restrictions: Inland waterway feeder services have been gradually suspended since July 9. Vessels already en route are seeking nearby shelter, with transit times expected to be delayed by 2–3 days; Sea-rail intermodal terminals and railway yards are also implementing empty container securing measures, limiting transloading and handling efficiency, with train services experiencing reduced capacity. Recommendations: For time-sensitive cargo, we recommend using direct trucking to the port area as a priority, and postponing intermodal solutions for now; For water-land intermodal cargo, please ensure enhanced waterproofing and internal securing to prevent weather-related cargo damage; During the typhoon period, additional costs such as transit storage, yard storage, and vessel re-booking may arise – please factor these into your budget planning. III. Peak Season Congestion Compounded by Typhoon – Port Pressure Intensifies Current...

Market Is Becoming More Stable Compared with the first half of the year, the market has gradually become more stable. Many customers are closely monitoring raw material prices and prefer to wait, hoping that prices will decline further before making purchasing decisions. We completely understand this cautious approach, as everyone wants to secure the most competitive purchasing cost. Reliable Market Insights from Leading Factories Through the long-term partnerships established by our General Manager, Ms. Shylin, with many leading raw material manufacturers, we have access to reliable first-hand market information. According to the latest updates from these factories, raw material prices are already approaching the bottom of the current market cycle, and the possibility of significant further decreases appears to be limited. Lessons Learned from the First Half of the Year The market volatility experienced during the first half of the year has provided valuable lessons for many businesses. Geopolitical conflicts and supply chain disruptions led to unexpected price fluctuations and delivery challenges. In many cases, companies that delayed purchasing in anticipation of lower prices ultimately faced higher costs, extended lead times, or supply shortages. This experience has shown that excessive hesitation can sometimes create greater risks than making timely purchasing decisions. Plan Ahead to Reduce Business Risks Although no one can predict future market movements with complete certainty, reviewing purchasing plans and maintaining appropriate inventory levels can help businesses reduce procurement risks and ensure a stable supply for ongoing production. Making decisions based on reliable market information is often the most effective way to prepare for potential market changes. Our Suggestion for Customers We would like to share this market update as a reference for our valued customers. If you have upcoming production schedules or long-term purchasing requirements, now may be an ideal time to evaluate your procurement plan and inventory strategy. Our team will continue to monitor market developments closely and is always ready to provide the latest information, competitive quotations, and professional support for your business. Thank you for your continued trust and support. We look forward to working with you and helping you secure a stable and cost-effective supply.

Recently, many of you have noticed that textile and chemical fiber prices in China have remained relatively elevated. We would like to briefly explain the core reason behind this trend. This is not a demand‑driven price increase, but rather a cost‑push effect coming from the exchange rate. The logic chain is very clear: The Fed's ongoing hawkish signals → a stronger US dollar → RMB depreciation against the dollar → higher import costs for dollar‑denominated chemical fiber raw materials → domestic prices for polyester, nylon, spandex, and other chemical fibers moving up accordingly. So far this year, the Federal Reserve has kept interest rates unchanged at several meetings, but its official communications have consistently leaned hawkish, keeping the market's expectations for future rate hikes alive. Under this backdrop, the US dollar has remained strong, while the RMB has come under corresponding depreciation pressure. China's chemical fiber industry relies heavily on imported petroleum‑based feedstocks – including PTA, MEG, and other polyester intermediates, as well as various petrochemical derivatives used for nylon and spandex production. These materials are all priced and settled in US dollars internationally. When the RMB depreciates, domestic mills have to spend significantly more RMB to purchase the same volume of raw materials. This incremental cost cannot be fully absorbed internally, and it inevitably feeds into the ex‑factory prices of chemical fiber products. At the same time, the textile sector is currently in its traditional off‑season, with overall end‑user orders remaining subdued. Domestic demand for apparel and home textiles is relatively weak, and export orders have not shown any concentrated surge. In other words, downstream demand is not driving prices up – the real driver is the cost pressure from exchange‑rate movements. Therefore, the current "high" level of chemical fiber prices is a cost‑driven high. Whether this price level can ease in the short term will largely depend on the trajectory of the US dollar and the Fed's future policy stance. We recommend that you factor this into your order planning and make procurement arrangements accordingly. If you have any questions, please do not hesitate to contact us.

Strait of Hormuz Reopens – A Short Window to Secure Your Supply 1. Lower Oil Prices ≠ Lower Yarn Prices The drop in oil does reduce cost expectations for chemical fiber raw materials (PTA, MEG, etc.). But note: the current price decline is driven by expectations, not spot supply. While the strait is “technically” open, large‑scale commercial traffic has yet to resume. Once hundreds of backlogged tankers are released and global restocking demand kicks in, raw material prices could rebound sharply at any time. 2. Freight Rates Are Rising, Not Falling This is the most overlooked risk. Instead of falling, freight rates have surged since the reopening—tanker hire rates jumped from $106,500 per week to $190,500 per day, nearly doubling; VLCC daily rates have soared to nearly $470,000. The concentrated release of shipping demand has tightened vessel availability, meaning sea freight costs will only climb higher in the near term. More critically, about 441 large tankers are still waiting on the eastern side of the strait, and some 80 sea mines remain to be cleared in the main channel. Analysts estimate that within one month, traffic will only recover to about 50% of pre‑conflict levels. Full supply chain normalisation could take months or even longer. 3. A 60‑Day Window – Don’t Miss It The current arrangement is only a 60‑day transitional period under the U.S.‑Iran agreement. After that, whether the strait remains open, whether tolls will be imposed, or whether the situation reverses—all remain highly uncertain. Any breakdown in negotiations could lead to a fresh closure, triggering another surge in freight and raw material prices. 4. Our Recommendations This is a rare window for stock‑building: oil prices are relatively low, the strait is temporarily open, but freight rates have not yet returned to normal. Once accumulated vessels sail through and restocking demand fully kicks in, shipping tightness will push freight even higher, and raw material prices will follow suit. What does this mean for you? This is a rare window to act. Oil prices are temporarily low, but once the backlog clears and restocking demand kicks in, costs will climb. We strongly recommend that you: Confirm orders now to lock in current raw material prices. Arrange shipments early to avoid the coming capacity crunch. Build reasonable inventory during this 60‑day window to hedge against uncertainty. Opportunities like this don't last long. Contact us today to secure your supply before costs rise again

U.S.-Iran Ceasefire Opens a Window for Chemical Fiber Raw Material Procurement Published: June 2026 Recently, Iran and the United States officially signed a memorandum of understanding on a ceasefire, lifting the shipping blockade in the Strait of Hormuz. As the world’s most critical energy chokepoint returns to normal navigation, international oil prices have dropped sharply, and the impact is rippling downstream to the chemical and chemical fiber supply chains. Analysts point out that raw material costs, which had been inflated by geopolitical risk premiums, are now rapidly returning to more rational levels, presenting the chemical fiber textile industry with a window of lower prices. However, multiple supply chain experts caution that the enforceability of the ceasefire agreement remains highly uncertain. The two sides are still at odds over core issues, and the situation in the Middle East could easily reverse. Should tensions resurface, the risk of supply chain disruptions would rise again. On the demand side, global polyester fiber inventories are currently relatively low. As major textile-producing countries such as India and Bangladesh gradually resume operations, restocking demand is likely to be released in a concentrated manner. This suggests that raw material prices may rebound after a short-term low. Taken together, this is a favorable moment for chemical fiber textile buyers to lock in orders and arrange procurement at lower prices. RUNTEKS, as a professional supplier of chemical fiber raw materials, continuously monitors the impact of global geopolitical developments on supply chains. At this critical juncture of market volatility, RUNTEKS advises customers to seize the price window and plan procurement and logistics in advance, in order to effectively hedge against potential future uncertainties.

The 2026 Yarn Expo in the Greater Bay Area —— connecting the Bay Area and the world! On the coast of the South China Sea, the Guangdong-Hong Kong-Macao Greater Bay Area is full of vitality for high-quality development. A grand event related to the win-win cooperation of the global textile upstream industry is about to kick off. From June 9th to 11th, the 2026 Yarn Expo in the Greater Bay Area will be held at the Shenzhen Convention and Exhibition Center. At the same time, joined hands with Intertextile Greater Bay Area International Textile Fabric and Accessories Expo and PH Value Greater Bay Area International Knitting Expo to strongly link the three exhibitions, with a total exhibition area of 50000 square meters, gathering nearly 1000 exhibitors from around the world, covering the entire country and radiating the upstream and downstream forces of the textile and clothing industry chain in Hong Kong, Macao, Taiwan, Southeast Asia, and the global market. The linkage of the three exhibitions is the unique competitiveness of the 2026 Yarn Expo in the Greater Bay Area. Fiber, yarn, fabric, accessories, and ready to wear - upstream and downstream enterprises efficiently connect in the same time and space. High quality fiber yarn enterprises at home and abroad will make a stunning debut, focusing on specialized and innovative fields such as sports functional fibers, temperature sensitive filling fibers, waterproof and breathable materials, etc. With innovative fiber materials as the fulcrum, they will leverage the textile industry to advance towards green, functional, and intelligent development, accelerating the value leap of the industrial chain.

Over the past two weeks, the global textile supply chain has been hit by two “earthquake‑level” shocks – bunker fuel prices have soared nearly 70%, and after sharp volatility, crude oil prices have settled on a significantly higher floor. The most worrying signal for the industry has now appeared: textile raw materials have officially entered a new pricing era where prices rise easily but fall reluctantly. Why “only up, no down”? Rigid cost shift upward – For every 10% rise in fuel, the cost of chemical fiber raw materials increases by about 6–8%. With fuel up 70%, the theoretical cost floor for polyester, nylon, viscose and other major textile raw materials has been permanently raised. Oil prices won’t return to the old normal – Even if the Strait of Hormuz situation eases in the short term, demining, naval escorts, insurance recovery and rebuilding shipping confidence will take a long time. The International Energy Agency forecasts that oil prices will stay in the 85–95 USD/barrel range for the long term – nearly 40% higher than the 2025 level. Market psychology has hardened – Downstream mills generally accept that “prices will never go back to where they were”. Small price increases now actually trigger stocking demand, creating a self‑reinforcing upward spiral. What this means for you The longer you wait, the higher the cost – Room for prices to correct is extremely limited. Hesitation will only lead to higher procurement costs. The longer you wait, the longer the lead time – Ocean freight rates keep climbing, and the vessel‑space crunch has lengthened from the usual 2–3 weeks to 5–8 weeks. With the European summer holidays and the year‑end peak season ahead, logistics lead times will be very unstable for the next three months. RUNTEKS’ commitment – you don’t have to face this alone.Facing this “easy‑up, hard‑down” market, we have built three lines of defence for you.

International oil prices are fluctuating at a high level, and polyester filament is facing upward pressure - it is recommended to stock up in advance. We will do our best to ensure supply, delivery time and quality.  Dear Customer: Recently, the international crude oil market has once again entered a period of intense volatility. Affected by multiple factors such as the repeated regional conflicts in the Middle East, the continuation of OPEC+ production cuts, and the decline in US crude oil inventories, the Brent crude oil price reached over $110 per barrel in mid-May. Although it experienced a technical correction later, it is currently still stable in the high range of $105 - $108 per barrel. Many energy institutions predict that in the short term, geopolitical risks are unlikely to subside, and the oil price is likely to continue to maintain a high-level wide-range fluctuation pattern.  Crude oil is the starting point of the chemical fiber industry chain. An increase in oil prices will quickly be transmitted to every stage of the process, namely PX (para-xylene) → PTA (polarized terephthalic acid) → MEG (ethylene glycol) → polyester chips → polyester filament (POY/FDY/DTY).  1. Why should you be highly vigilant about current oil price fluctuations? Cost-push inflation is characterized by rigidity and persistence Unlike demand-pull inflation, once cost-push inflation starts, it tends not to fall rapidly. As long as the price of crude oil does not drop significantly, the production cost of polyester filament will remain at a high level, and factories can only shift the pressure by continuously raising prices.  Upstream factories may voluntarily reduce production, leading to a tightening of supply. When the profits in the PTA and polyester production processes are compressed to a certain extent, some small and medium-sized factories will choose to cut costs or conduct maintenance. Historical data shows that when the oil price exceeds $100 per barrel and remains so for more than three weeks, the average industry operating rate may drop by 5% to 8%. The reduction in supply will further push up the spot prices, and even lead to a situation where there is value but no quantity.  Concentrated replenishment downstream can easily lead to logistics congestion. Once customers generally realize that prices will continue to rise, they tend to place orders and prepare stocks in a concentrated manner. Based on past experience, this "herd effect" will result in:  The factory's production schedule has suddenly become fully booked, and the delivery dates have been extended.  Container shortages and tight shipping space, with temporary price hikes for sea or land transportation services.  Quality control experienced fluctuations due to the rush production.  2. What preparations have we made for you? — Three guarantees, as solid as a rock In the face of market uncertainties, RUNTEKS, leveraging its stable supply chain r...