SunSirs: Cost Support Had Been Strengthened, and the Price of Polyester Staple Fiber Was Adjusted to Be Stronger
August 27 2024 15:17:38 SunSirs (John)
Price trend
According to the Commodity Market Analysis System of SunSirs, the domestic polyester staple fiber market has maintained a fluctuating downward trend since August, with a 3.23% decline as of August 25th. On August 26th, there was a slight rebound, with the average price of mainstream factories in Jiangsu and Zhejiang at 7,535 RMB/ton, up 0.44% from the previous trading day. The rise in raw material prices and increased cost support led to a surge in prices for short fiber producers and traders, but the trading atmosphere remained weak.
Analysis review
The expectation of the Federal Reserve cutting interest rates increased, which was positive for the commodity market atmosphere. International oil prices had risen, and on August 23rd, the settlement price of the main contract for WTI crude oil futures in the United States was 74.83 US dollars per barrel, an increase of 1.82 US dollars per barrel or 2.5%. The settlement price of the main Brent crude oil futures contract was 79.02 US dollars per barrel, an increase of 1.80 US dollars per barrel or 2.3%. PTA continued to rise, with an average market price of 5,388 RMB/ton in the East China region, up 0.98% from the previous trading day. However, the later announced PTA plant maintenance plan is limited, and there was a strong expectation of accumulated inventory in the market.
The peak season for traditional terminal demand was approaching. If demand rebounds as expected, it can boost confidence in the textile market and drive procurement enthusiasm. As of August 26th, most of them maintained a small amount of procurement for essential needs, with only a few downstream feedback showing signs of improvement in order volume. The operating rate of weaving machines in Jiangsu and Zhejiang was temporarily around 64%. In the future, attention can be paid to the operating situation of "Golden September" terminal textile enterprises, or there may be a phenomenon of periodic bargain hunting procurement.
Market outlook
SunSirs’ analysts believe that the peak season of "Golden September" has not yet been concentrated, and the positive driving force on the demand side is not yet obvious. The market is waiting for a turning point between the peak and off peak seasons. But with the strengthening and consolidation of crude oil, cost support is still present, and it is expected that the price of polyester staple fiber will rise narrowly in the short term.
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