Price trend
According to the commodity market analysis system of SunSirs, the domestic polyester staple fiber price adjusted slightly weakly last week (September 15-19). As of September 19, the average market price of polyester staple fiber (1.4D*38mm) was 6,459 RMB/ton, down 0.18% from the beginning of the week.
Analysis review
In the crude oil market, the conflict between Russia and Ukraine has raised potential supply risks, particularly concerns about crude oil supplies from a European country. Coupled with the Federal Reserve's interest rate cut, international oil prices have recently risen, supporting PTA costs. As of September 18, the November contract for WTI crude oil futures settled at $63.26 per barrel, while the December contract for Brent crude oil futures settled at $66.92 per barrel.
Planned restarts at PTA plants have been postponed, change in overall demand was little, and cost support was reasonable. Last week (September 15-19), the domestic PTA market saw narrow fluctuations. As of September 19th, the average PTA price in East China was 4,631 RMB/ton, down 0.01% from the start of the week. PTA processing fees remained at a yearly low, with the domestic industry operating rate temporarily around 76%. There were expectations of plant restarts in the near future, and some PTA plants added maintenance plans for October and November, which was positive for market sentiment.
On the demand side, lacking clear guidance, most yarn mills adopted a cautious wait-and-see approach, resulting in generally subdued market activity and stable quotes. Actual transactions were largely driven by market trends. With the traditional peak season sluggish, terminal demand was tepid, and orders generally fell short of expectations, leading to a prevailing wait-and-see attitude in the market.
Market outlook
Analysts from SunSirs believe that in the short term, cost support is acceptable, but downstream purchasing enthusiasm is hindered, the market lacks substantial positive boost, and the price of polyester staple fibers may decline.
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