Price trend

Recently, the mainstream market price of polyester staple fiber had remained stable at 7,672 RMB/ton. Despite the gross profit loss of staple fiber factories, there had been a strong attitude of price support. The prices of staple fiber factories had remained stagnant, and the price range of traders had fluctuated.

Analysis review

The cost center had fallen, and the price of raw material PTA had fallen. As of April 22, the average spot market price in East China was 5,947 RMB/ton, a decrease of 0.76% compared to the previous trading day. As of April 22nd, two sets of PTA plants with a total capacity of 5 million tons were restarting, and the market's expectation of sufficient supply of PTA goods was increasing. It is expected that PTA spot prices may fluctuate weakly, thus weakening the cost support for polyester staple fibers.

The downstream procurement enthusiasm was average, the market transaction atmosphere was light, and the transaction price was stable. The reference price for the 32S pure polyester yarn market in Shandong region was 12,325 RMB/ton. The mentality of the yarn factory was mainly cautious and watchful. The inventory of the yarn factory continued to rise, cash flow wais under pressure, order volume was insufficient, and purchasing enthusiasm was weakened.

Market outlook

Analysts from SunSirs believe that as the industry entered the off-season, downstream factories were gradually reducing their procurement pace for polyester short fibers, making it difficult for the demand side to provide support for polyester short fibers. Due to factors such as the realization of new equipment production and the expected recovery of maintenance, the price of raw material PTA will also be adjusted to be weaker under supply pressure. Overall, there are many short-term bearish factors for polyester staple fibers, and there is still downside risk.

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