SunSirs: Polyester Prices Remained Weaker in September, Stabilizing at the End of the Month
October 08 2024 10:33:23 SunSirs (John)
Price trend
According to the Commodity Market Analysis System of SunSirs, the price of polyester filament has been declining since mid July, and the price continued to show a weak downward trend in September. On September 30th, the mainstream polyester filament factories in Jiangsu and Zhejiang Province quoted POY (150D/48F) at 6,900-7,200 RMB/ton, polyester DTY (150D/48F low elasticity) at 8,400-8,800 RMB/ton, and polyester FDY (150D/96F) at 7,400-7,700 RMB/ton, with a decline of more than 10% in this round.
Analysis review
In terms of raw materials, the domestic PTA spot price stopped falling and stabilized in late September. As of September 29th, the average spot price of PTA in East China was 4,888 RMB/ton. The Federal Reserve announced a 50 basis point interest rate cut, lowering the target range for the federal funds rate from 5.25% -5.5% to 4.75% -5.0%. This was the first time the Federal Reserve had cut interest rates since March 2020, marking a shift in US monetary policy from a tightening cycle to an easing cycle. Financial benefits had been released, and PTA futures had been supported. It is expected that the future price trend will be stronger.
In terms of demand, the cooling weather can effectively stimulate the sales of seasonal clothing, and the market had shown some improvement with a significant increase in order volume. After the macro release of favorable policies within the week, domestic polyester filament factories took the opportunity to offer discounts and promotions, resulting in a significant increase in factory production and sales data. Subsequently, driven by the decline in finished product inventory and the rebound of raw materials, some polyester filament factories reduced their discounts and moderately increased their price focus.
Market outlook
Overall, analysts from SunSirs predict that the willingness of filament enterprises to ship still existed, and it is expected that the filament market prices will remain stable with fluctuations in the short term, with rigid demand. In the future, attention needs to be paid to the trend of the raw material market and the issuance of downstream orders.
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