Price trend
According to the Commodity Market Analysis System of SunSirs, the domestic polyester staple fiber market showed a slight upward trend this week (August 7-11) driven by cost benefits. As of August 11, the average factory price of 1.4D * 38mm polyester staple fiber was 7,651 RMB/ton, an increase of 0.44% compared to the beginning of the week.
Analysis review
The crude oil fluctuated stronger, and concerns about supply tightening had driven the oil price to a nearly nine month high. As of August 10th, the settlement price of the main contract for WTI crude oil futures in the United States was at 82.82 US dollars per barrel, while the settlement price of the main contract for Brent crude oil futures was at 86.40 US dollars per barrel. Under low processing costs, there was an unexpected increase in PTA device maintenance and a decrease in supply recently. This week, the domestic PTA market showed a slight recovery, with the average market price in East China as of August 11th at 5,914 RMB/ton, an increase of 1.09% compared to the beginning of the week.
The downstream yarn market was still stable and wait-and-see, with a consolidation trend as the main trend. Most yarn factories and traders were calm and waiting for the peak season, and some yarn factories had taken low-priced restocking actions, and the increase in power was slower. As of August 11th, the average price of pure polyester yarn in the Shandong region remained stable at 12,775 RMB/ton, a year-on-year decrease of 10.66%. As of August 11, yarn mills generally indicated that although inventory pressure was not high, they were somewhat cautious about the future market.
Market outlook
Analysts from SunSirs believe that the strong prices of short-term raw materials still provided favorable support for the polyester short market. Considering that the traditional peak season in September is approaching and downstream yarn orders are expected to improve, the polyester staple fibers market will continue to be stronger in the short term.
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