Price trend

The domestic polyester staple fiber market had relatively loose supply of goods, and downstream on-demand procurement transactions were sluggish. Recently (February 12-20), prices have shown a slight weakening. According to the Commodity Market Analysis System of Business Society, as of February 20, the average market price of domestic polyester staple fiber (1.4D * 38mm) was 6,985 RMB/ton, a decrease of 1.06%. The average ex factory price of mainstream factories in Jiangsu and Zhejiang regions was 7,276 RMB/ton, a decrease of 0.68%.

Analysis review

Looking at the future, in the international crude oil market, the CPC oil pipeline in Russia has been attacked, resulting in a reduction of about 30% in oil transportation volume and supply, which will continue to drive up oil prices. As of February 19th, the settlement price of the main contract for WTI crude oil futures in the United States was 72.25 US dollars per barrel, and the settlement price of the main contract for Brent crude oil futures was 76.04 US dollars per barrel.

The international crude oil market was relatively stronger, and under the news game of PTA cost support, sufficient spot supply, and less than expected demand recovery, there has been an overall strong oscillation in recent times. As of February 20th, the average market price in East China was 5,122 RMB/ton, an increase of 0.89% compared to February 13th. Under the low processing difference of PTA, maintenance plans for PTA units have been gradually launched, and the extent of destocking has expanded compared to expectations. However, downstream polyester factories have limited raw material procurement, only maintaining essential needs or digesting early stock, resulting in increased resistance to inventory transfer for time being.

The recovery of terminal textile demand was not smooth, the enthusiasm for buying was average, and the follow-up of essential procurement was maintained, resulting in a weak trading atmosphere. Insufficient follow-up on weaving orders, slow increase in production in Jiangsu and Zhejiang provinces, with a focus on resuming work. The overall shortage of fabric orders has slightly increased the start-up rate to 56%, but the progress was lower than expected.

Market outlook

SunSirs’ analysts believe that the cost support was still acceptable. With the arrival of the traditional consumption peak season of "Golden March and Silver April", the demand side will also improve, and it is expected that the price of polyester staple fiber may rise slightly.

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