Price trend

According to the Commodity Market Analysis System of SunSirs, the price of domestic polyester staple fibers had slightly decreased since November. As of November 21, the average price of 1.4D * 38mm in mainstream factories in Jiangsu and Zhejiang was 7,612 RMB/ton, a decrease of 0.39% compared to the beginning of the month. The trend of polyester staple fibers was greatly affected by the raw material PTA. The strength of PTA had driven the price of staple fibers to slightly recover, but it had quickly returned to calm due to weak demand. As of November 21st, the polyester staple fiber industry was operating at around 80%, with ample supply of goods. The market trading atmosphere was cold and wait-and-see sentiment was strong, with factories and traders mainly negotiating prices.

Analysis review

On November 21st, PTA's main futures TA2401 suffered a sharp decline, with a closing price of 5,822 RMB/ton, a decrease of 3.80%. Spot prices fell with the average market price in the East China region at 5,879 RMB/ton, a decrease of 2.80%. On that day, there were many restarts of PTA devices, with nearly 3 million tons of devices restarting, and the industry's operating rate increased to over 80%. In addition, there were over 2 million tons of equipment and 1.25 million tons of new equipment planned to be restarted and put into operation by the end of the month, and the market is expected to increase its supply of PTA in the future.

Downstream yarn factories and traders were just in need of procurement, with a shortage of orders and a decline in some specifications’ prices. The pure polyester yarn market in the Xiaoshao region continued to wait and see, with 32S mainstream at around 11,700 tons and 50S mainstream at around 15,200 RMB/ton. The quotation for pure polyester ring spinning 32S in the Changle market in Fujian was between 11,300 and 11,400 RMB/ton. The cost support for raw materials was average, and the shipment from the yarn factory was average. The speed of inventory accumulation in the enterprise had increased, and the market transaction atmosphere was weak, with on-demand purchases being the main focus.

Market outlook

Analysts from SunSirs believe that the PTA maintenance equipment for raw materials had been restarted and new equipment had been put into operation. Under pressure from supply and demand, there was a risk of price decline, which weakened the cost support for polyester staple fibers. With the end of the "Golden September and Silver October" period in the downstream market, the operating load may decrease, and it is expected that the prices of polyester staple fibers will continue to decline.

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