Price trend

According to the Commodity Market Analysis System of SunSirs, the domestic polyester staple fiber market maintained a fluctuating downward trend since April. As of June 27, the average factory price of 1.4D * 38mm polyester staple fiber was 7,376 RMB/ton, a decrease of 6.35% compared to April 3 and a year-on-year decrease of 17.13%.

Analysis review

The cost side PTA was affected by the weakening of crude oil, and fell significantly in April until mid May, with a decrease of nearly 15%. Afterwards, as the crude oil market improved and PX devices reduced load, PTA prices rebounded slightly. As of June 27, the average market price in East China was 5,630 RMB/ton, up 1.86%.

After the weak recovery of downstream domestic trade demand, the traditional textile off-season had deepened, coupled with poor performance in the foreign trade market, yarn manufacturers entered a stock accumulation period. The increase in new orders for conventional yarn mills was gradually decreasing, and the pace of purchasing polyester short products was slowing down, with demand based procurement being the main focus. The dual circulation operation of domestic and foreign markets was not smooth, and demand continued to be weaker.

Market outlook

Analysts from SunSirs believe that as of the 27th, crude oil and PX prices had fallen, and domestic PTA devices had restarted frequently, resulting in weak cost support. Under the backdrop of the textile off-season, demand for short fibers will be further reduced, but there is an expectation of incremental supply for polyester staple fibers themselves. Under the bearish supply and demand contradiction, the price of polyester staple fibers may be weaker.

If you have any questions, please feel free to contact SunSirs with support@SunSirs.com.