Price trend

According to the Commodity Market Analysis System of SunSirs, the price of polyester staple fiber has risen significantly recently. As of June 19th, the average market price of domestic polyester staple fiber (1.4D * 38mm) was 6,803 RMB/ton, an increase of 4.51% compared to June 11th.

Analysis review

Affected by geopolitical events, international oil prices rose. On June 18th, the settlement price of the August WTI crude oil futures contract in the United States was $73.50 per barrel, and the settlement price of the August Brent crude oil futures contract was $76.70 per barrel. Combined with the continuation of the traditional fuel consumption peak season in the United States, crude oil inventories maintained a trend of destocking, providing favorable support for oil prices.

The domestic PTA spot market followed the rise of crude oil, with the average PTA market price in East China at 5,246 RMB/ton as of June 19th, an increase of 7.69% from June 11th. In terms of supply, the PTA operating rate rose to 83.6% in June, and the peak of PTA plant maintenance had passed. The new production capacity was put into trial operation, and the fundamentals had suppressed its increase. The 2.5 million ton annual production facility of Honggang Petrochemical had been successfully put into operation, but with the addition of new production capacity, the pressure of overcapacity had intensified.

After entering June, the seasonal off-season for terminals had arrived, with weak demand and gradually weakening terminals without sustained support. As of June 19th, there was a shortage of domestic and foreign trade orders, with a small number of autumn and winter orders being the main focus. The future orders were uncertain, and the recovery was not as expected.

Market outlook

SunSirs’ analysts believe that the cost side support was stable, and crude oil prices were firm, but there was an expectation of weakened supply and demand, and it is expected that there is a risk of a fall after a surge in the price of polyester staple fibers.

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