Price trend
According to the commodity market analysis system of SunSirs, the domestic polyester staple fiber price fluctuated and fell last week (November 17-23). As of November 23, the average market price of polyester staple fiber (1.4D*38mm) was 6,297 RMB/ton, a decrease of 0.06% compared with the beginning of the week.
Market Analysis
Looking ahead, the oversupply in the crude oil market naturally drives oil prices downward. However, geopolitical factors continue to inject uncertainty into the market, offsetting the downward pressure from oversupply to some extent. Oil prices are expected to maintain a volatile and fluctuating pattern, and will likely continue to exhibit high volatility in the short term. As of November 20th, the settlement price for the January contract of US WTI crude oil futures was $59.00 per barrel, and the settlement price for the February contract of Brent crude oil futures was $62.80 per barrel.
Last week, the domestic PTA market saw a slight decline. As of November 23, the spot price of PTA in East China was 4,622 RMB/ton, down 0.53% from the beginning of the week. India's BIS relaxed certification requirements, and some PTA plants underwent early maintenance due to unforeseen circumstances, improving the supply structure and expected to boost exports. However, prices remained weak due to suppressed end-user demand.
Downstream yarn demand was weak due to weak cost adjustments and insufficient support from end-user orders. Factories negotiated on a case-by-case basis and adjusted discounts accordingly. Looking at end-user operating rates, seasonal factors led to a decrease in raw material inventory at companies in the Jiangsu and Zhejiang regions, and new orders in the weaving sector weakened in some areas.
Market Forecast:
Analysts at SunSirs believe that cost-side fluctuations and adjustments offered limited support. With seasonal demand declines and end-user loads slowly decreasing, insufficient weaving orders led to weak raw material procurement intentions among yarn mills, and polyester staple fiber prices are expected to remain weaker.
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