Spot market: raw materials fell. Pure polyester yarn and polyester-cotton yarn followed the decline. According to SunSirs data monitoring, the price of pure polyester yarn in Shandong was about 14,333 yuan/ton, down 600 yuan/ton from the previous high of 14,933 yuan/ton, a drop of 4.0 %. Traders in the Fujian region buy more goods at low prices, and the high-end factories have few transactions. At present, more early-stage orders are delivered. Some spinning mills still owe goods for 7-10 days. If the market continues to be unsatisfactory, the pressure on the spinning mills will increase next week, and the decline will accelerate.

Upstream polyester staple fiber: staple fiber futures continued to fall sharply, hitting an intraday limit, and the PF05 contract closed at 7,370 yuan/ton, down 404 from the previous day’s settlement price. The price of some factories was lowered, and the center of semi-gloss 1.4D transaction fell to 7,400-7600 yuan/ton. The factory's production and sales are light, with an average of around 6%. Jiangsu and Zhejiang semi-gloss 1.4D mainstream is 7050-7600 yuan/ton, Fujian semi-gloss 1.4D mainstream is 7600-7700, Shandong, Hebei mainstream is 7500-7700 yuan.

Downstream demand: The domestic and foreign sales orders were lower than expected from March to May. The weaving mills’ enthusiasm for yarn inquiries and delivery has significantly cooled down, and the price reduction momentum has been fierce; some spinning mills have accumulated stockpiles or short-term stocks after the Spring Festival. Insufficient orders and voluntarily began to lower the quotation, and the entire yarn and grey fabrics were in a trend of "hills and rains coming and wind blowing" with the wide callback of the raw material polyester staple fiber.

Recommendations: The futures market continues to fall, and the wait-and-see mentality has increased. At present, there is no willingness to break the market at 7,000 points. The market outlook is recommended to continue to pay attention to the impact of raw material prices and downstream demand.

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