Price trend

According to the Commodity Market Analysis System of SunSirs, the domestic polyester staple fiber market has fluctuated slightly downward since August. As of August 19th, the average price of 1.4D * 38mm in mainstream factories in Jiangsu and Zhejiang was 7,618 RMB/ton, a decrease of 1.72% from the beginning of the month. Polyester staple fiber factories had reduced production to maintain prices, but cost adjustments had weakened, coupled with insufficient demand support, which had dragged down the prices of polyester staple fibers.

Analysis review

The trend of US oil destocking in the crude oil market was not as expected, and the support for the oil market was limited. We still need to be vigilant about changes in the geopolitical situation, and oil prices may remain stable. As of August 16th, the settlement price of the main contract for WTI crude oil futures in the United States was 76.65 US dollars per barrel, and the settlement price of the main contract for Brent crude oil futures was 79.68 per barrel. Recently, the overall supply capacity of PX in Asia had been at a high level, coupled with the continued shutdown plans of some PTA plants in China, resulting in a consolidation of PX prices at a low level.

The domestic PTA market had fluctuated and adjusted weakly, with the average spot price of PTA in East China at 5,446 RMB/ton, a decrease of 6.58% from the beginning of the month. In terms of supply, the operating rate of the PTA industry in China was around 86%, maintaining a high level, and the overall supply of goods was still abundant.

Terminal demand was still in the off-season, and finished product inventory was still mainly accumulated. Downstream enterprises were cautious about raw material procurement, mainly focusing on sporadic and essential purchases. The improvement in autumn and winter orders was limited, and the overall performance was poor. As of August 19th, the operating rate in Jiangsu and Zhejiang remained around 63%. With the gradual reduction of high temperature weather and the increase in downstream production, the demand for polyester staple fibers may increase slightly.

Market outlook

SunSirs’ analysts believe that although polyester staple fiber factories continued to reduce production, there was a lack of highlights in the fundamentals, with cost declines and weak demand. It is expected that polyester staple fiber prices will continue to decline.

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