Price trend

According to the Commodity Market Analysis System of SunSirs, the domestic polyester staple fiber market weakened slightly last week (April 21-25). As of April 25, the average market price of domestic polyester staple fiber (1.4D * 38mm) was 6,294 RMB/ton, a decrease of 0.37% from the beginning of the week.

Analysis review

On April 22nd local time, US President Trump announced at a White House press conference that the high tariffs imposed on goods from China will be significantly reduced. The trade friction caused by tariff issues has eased, and market sentiment has improved, providing some support for oil prices. As of April 24th, the settlement price of the main contract for WTI crude oil futures in the United States was 62.79 US dollars per barrel, and the settlement price of the main contract for Brent crude oil futures was 66.55 US dollars per barrel.

Under the boost of the crude oil market, the average market price in East China as of April 25th was 4,493 RMB/ton, up 3.78% from the beginning of the week. Recently, PTA plant restarts and maintenance coexist, with Ningbo Taihua's 1.2 million ton PTA plant starting maintenance on September 1, 2024 and restarting as planned by the end of April; Jiatong Energy's 2 million tons/year PTA plant will undergo scheduled maintenance at the end of April, with the restart time to be determined.

Under the influence of tariffs, the market fluctuates greatly, and downstream yarn factories were cautious in purchasing goods, mainly focusing on digesting inventory. The production of weaving machines in Jiangsu and Zhejiang provinces continued to decline by around 60%, and the export of terminal textiles and services was hindered due to the disturbance of tariff policies, which had a negative feedback impact on the upstream. The downstream production rate is likely to decline during the May Day holiday, and demand will further decrease.

Market outlook

SunSirs’ analysts believe that the cost side support was still acceptable, and there is an expectation of reduced PTA supply. There will still be equipment maintenance next week. However, the terminal performance is weak, and downstream purchases are mainly based on demand. Under the unstable external factors, the market lacks drivers and tends to adopt a wait-and-see attitude. It is expected that the prices of polyester staple fibers will experience a slight consolidation in the short term.

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