Price trend

According to the Commodity Market Analysis System of SunSirs, under the dominance of cost decline, the mainstream market price of domestic polyester staple fiber slightly fell this week (July 15-19). As of July 19, the average price of 1.4D * 38mm in mainstream staple fiber factories was 7,918 RMB/ton, a decrease of 0.31% from the beginning of the week.

Analysis review

The price of raw material PTA had weakened, with the average PTA market price in East China at 5,931 RMB/ton, a weekly decline of 0.25%. As of July 19th, the operating rate of the PTA industry in China was around 84%, and some units will still restart in the later stage. However, the PTA maintenance plan is relatively few, and the liquidity may be sufficient after the supply returns, resulting in significant pressure on the accumulated inventory.

Mainstream polyester staple fiber factories maintained high price sales, increasing inventory pressure, and traders attracted customers with relatively low prices, resulting in a strong shipping mentality. Although there are no maintenance plans in the near future, there is a possibility of unplanned production cuts due to the pressure of factory inventory accumulation. It is expected that the trend of production will decline and the supply will decrease.

On the demand side, the textile terminal continued to be in a off-season state, downstream yarn factories had weak shipments, the market had scarce new orders, and inventory turnover was slow. The yarn factory was resistant to high priced raw materials, and at the same time, cash flow was tight. They were mainly observing and maintaining a small amount of essential purchases.

Market outlook

SunSirs’ analysts believe that the downward shift in cost center had weakened the support for polyester staple fibers, coupled with weak downstream demand, and the lack of enthusiasm for raw material procurement. As of July 19th, only polyester staple fiber manufacturers were selling at high prices, which is expected to provide insufficient support for the price.

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