Price trend

According to the Commodity Market Analysis System of SunSirs, domestic polyester filament prices fluctuated narrowly from July 15th to 21st. As of July 21st, mainstream polyester filament factories in Jiangsu and Zhejiang offered POY (150D/48F) at 8,030 RMB/ton, polyester DTY (150D/48F low elasticity) at 9,300-9,500 RMB/ton, and polyester FDY (150D/96F) at 8,546 RMB/ton. During the week, the cost support of the polyester filament market gradually weakened, and there was a clear wait-and-see attitude in the market. The demand side was in the off-season, with average trading and stable quotes from polyester filament factories.

Analysis review

As of the close of July 18th in the crude oil market, the price of light crude oil futures for August delivery on the New York Mercantile Exchange closed at 82.82 US dollars per barrel, a decrease of 0.04%; The London Brent crude oil futures price for September delivery closed at 85.11 US dollars per barrel, an increase of 0.04%.

In terms of PTA, PTA prices had fallen this week, and the mainstream PTA quotation was temporarily around 5,800-5,900 RMB/ton for self pickup. As the operating rate rebounded and PTA fundamentals declined, it is expected that prices will remain volatile next week.

In terms of ethylene glycol, the price of ethylene glycol fluctuated this week, and the mainstream quotation was temporarily around 4,600-4,700 RMB/ton. As of July 21st, the fundamentals of the ethylene glycol market were good, and prices may be strong in the future.

In terms of polyester filament, as of July 21st,, the market generally adopted a wait-and-see attitude, and the industry's procurement activities appeared to be more cautious, resulting in a slight decrease in downstream demand and terminal production load while maintaining stability. This trend had exacerbated the inventory backlog problem of major polyester filament producers, while the weak performance of the raw material market had also created additional pressure.

Market outlook

SunSirs’ analysts believe that PTA fundamentals were weakening. The scorching summer heat had led to an increase in production cuts and a decrease in demand for polyester filament, which had significantly weakened the market demand for polyester filament. In the short term, although mainstream polyester fiber manufacturers still adhere to a high price stance and show a strong willingness to maintain prices, all parties have adopted a more cautious wait-and-see attitude in the price game with downstream markets. Based on this, it is expected that the price of polyester filament will fluctuate within a relatively stable range in the future, and the market trend will show a characteristic of oscillating operation.

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