Price trend

According to the Commodity Market Analysis System of SunSirs, on July 24th, the domestic polyester staple fiber market continued to weaken, with an average price of 7,851 RMB/ton for 1.4D * 38mm, a decrease of 0.84% from the previous trading day. The sustained decline in cost has weakened the support for polyester staple fibers, and on July 24th, mainstream production factories generally lowered prices by 100 RMB/ton. Downstream buyers' willingness to purchase at low prices has increased, and the transaction atmosphere has slightly improved.

Analysis review

The price of raw material PTA fluctuated downward, and as of July 24th, the average price of PTA in the East China region was 5,878 RMB/ton, a decrease of 2.64% from the beginning of the month. Recently, there have been many restarts of PTA facilities, leading to increased expectations of loose supply. Two sets of PTA plants with a total capacity of 6 million tons in Yisheng Dalian were restarted after a short shutdown. As of July 24th, the operating load of domestic industries was around 86%. In the short term, the number of PTA planned maintenance units was limited, and the supply of goods was abundant. It is expected that PTA prices will continue to show a weaker trend.

Rumors had it that mainstream polyester staple fiber manufacturers planned to reduce production by 10% by the end of this month, with expectations of supply contraction supporting market sentiment. However, downstream yarn mills were skeptical about reducing production and had a strong wait-and-see attitude. Under the pressure of accumulating inventory, they were cautious about purchasing raw materials for essential needs.

Market outlook

SunSirs’ analysts believe that with the gradual implementation of the polyester factory production reduction plan, the demand for PTA will decrease, and PTA will remain weak. Due to the accumulation of downstream finished product inventory on the demand side and tight cash flow, the enthusiasm for purchasing raw materials is not high. Although there have been reports of production cuts in short fiber factories, it is expected that prices will continue to decline in the short term due to weak costs and demand.

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