SunSirs: The Bearish Atmosphere Was Strong, and the Price of Polyester Staple Fiber Remained Downward
August 21 2024 15:17:12 SunSirs (John)
Price trend
According to the Commodity Market Analysis System of SunSirs, the domestic polyester staple fiber market continued to decline on August 20th. The average price of 1.4D * 38mm in mainstream factories in Jiangsu and Zhejiang was 7,501 RMB/ton, a decrease of 1.53% from the previous trading day. The general quotation was between 7,450-7,550 RMB/ton, a decrease of about 100 RMB/ton. The weak raw material prices have dragged down, and downstream purchases were cautious according to demand, resulting in a strong bearish atmosphere in the overall short fiber market.
Analysis review
The United States was pushing for a ceasefire agreement to end the Gaza conflict, and concerned about weak demand have put pressure on the market. International oil prices had plummeted, and on August 19th, the settlement price of the main WTI crude oil futures contract in the United States was 74.37 US dollars per barrel, a decrease of 2.38 US dollars or 3.0%. The settlement price of the main Brent crude oil futures contract was 77.66 US dollars per barrel, a decrease of 2.02 US dollars or 2.5%. PTA followed the decline in crude oil prices, coupled with expectations of accumulated inventory, and prices continued to fall. On August 20th, the average PTA market price in East China was 5,357 RMB/ton, a decrease of 1.63% from the previous trading day.
Downstream terminal demand was sluggish, and some finished product inventory had accumulated, resulting in sporadic purchases of raw materials. As of August 20th, the purchasing enthusiasm of terminal enterprises was limited, and they planned to purchase raw materials at a low price after digesting the inventory.
Market outlook
SunSirs’ analysts believe that there was still significant uncertainty in the geopolitical situation, and international crude oil was operating weakly. The PTA industry had a high operating rate of over 86%, and the supply of goods was still abundant, so the cost guidance has slowed down. Downstream was in the traditional off-season and cautious in raw material procurement. It is expected that the price of polyester staple fiber will continue to decline in the short term.
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