Price trend

Spot price: This week (8.22-8.26)) the spot price of domestic polyester staple fiber was stable. According to the price monitoring of SunSirs, on August 26, the average price of domestic polyester staple fiber was around 7,726 RMB/ton, a slight decrease of 0.64% from Monday and an increase of 8.09% from the same period last year.

Futures market: This week, staple fiber futures showed a unilateral rebound trend. The main contract of staple fiber PF futures closed at 7,466 RMB/ton on Friday, up 7.42% from last week's closing price. The settlement price was 7,446 RMB/ton. This week, the domestic staple fiber upstream raw material PTA futures rose 5.82% to close at 5,634 RMB/ton, and the ethylene glycol futures rose 5.02% to close at ,4099 RMB/ton.

Analysis review

This week, international crude oil futures prices rebounded due to the decline in U.S. crude oil inventories, the possibility of “OPEC+” production cuts and the negotiation of the Iran nuclear deal or important progress, and US oil rose 4.35% for the week (as of 16:18 Beijing time). The overall maintenance and production reduction of PTA units were more, the downstream construction increased slightly, PTA continued to be destocked, and prices rose. The maintenance and restart of multiple sets of ethylene glycol units were carried out in parallel, the overall load rebounded slightly, the supply is expected to increase, the ethylene glycol port inventory was slightly reduced, and the price rose.

The overall demand for pure polyester yarn and polyester-cotton yarn continued to be sluggish. The prices of several major producing areas were stable and weak, and the consolidated and negotiated. Under the influence of the high temperature and power curtailment policy, some spinning mills opened for three days and shut down for four days or had a high temperature holiday. Short fiber had more maintenance devices recently, and the inventory pressure was small. Downstream spinning mills and weaving mills gradually shifted from low season to peak season, and the demand improved slightly, but the overall improvement was not obvious. Affected by the strength of upstream raw materials, the staple fiber market trend is strong this week.

Market outlook

From the perspective of the market outlook, the cost support of staple fiber has been strengthened, but the downstream demand has not improved significantly. In terms of spot, the supply pressure will gradually increase after the new production capacity of Xinfengming and the completion of the maintenance of major factories. After a short-term rebound, the price of staple fiber may show a strong oscillation trend in the short term. The market outlook needs to pay attention to the trend of raw materials and the recovery of the peak season.

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