Price trend

According to the commodity market analysis system of SunSirs, the domestic polyester staple fiber price fluctuated upward last week (August 18-22). As of August 22, the average market price of domestic polyester staple fiber (1.4D*38mm) was 6,562 RMB/ton, up 1.4% from the beginning of the week.

Analysis review

Despite rising costs, the domestic PTA market saw a slight recovery last week, with the average price in East China reaching 4,771 RMB/ton, up 1.08% from the start of the week. PTA's overall fundamentals had improved, but PX supply was somewhat tight in the overseas market. The expected commissioning of new PTA plants both domestically and internationally was bolstering demand, leading to a gradual strengthening of PX prices. PTA plants in East and South China had been delayed in restarting or shutting down, optimizing their supply structure. Downstream polyester demand remained robust, with production and sales increasing. This, coupled with recent macroeconomic factors improving commodity sentiment, had contributed to a slight increase in PTA market prices.

Downstream yarn mills were increasingly reluctant, focusing on replenishing inventory based on demand. Since August, with the easing of tariffs, orders for autumn and winter fabrics and home textiles for export have gradually increased, with the operating rate of mainstream weaving industries in Jiangsu and Zhejiang provinces nearing 52%. However, inventories of conventional grey fabrics remained high among intermediaries and mills, and with limited new order follow-up, there was limited room for further capacity increases. Furthermore, actual large-scale orders remained sluggish. Against this backdrop, yarn mills were prioritizing capital recovery, making it difficult to see a significant rebound in actual demand.

Market outlook

Analysts of SunSirs believe that PTA was experiencing a period of improvement in supply and demand, with increased cost support. With the traditional peak demand season of September and October approaching, there were also expectations for demand in September. The continued release of strong orders for early winter homewear and bedding fabrics, coupled with the concentrated shipment of autumn clothing orders, will jointly drive the overall market sentiment to continue to recover. Polyester staple fiber prices are expected to remain stronger in the short term.

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