Price trend:

According to the business data analysis system of SunSirs, domestic polyester staple fiber prices declined slightly in December. As of December 15th, the average market price of polyester staple fiber (1.4D*38mm) was 6,270 RMB/ton, a decrease of 0.86% compared to the beginning of the month.

Market Analysis

Recent risks to crude oil supply had not been eliminated, and concerns about reduced supply due to geopolitical tensions continued to support oil prices. However, crude oil demand had not improved.  Overall, international oil prices are expected to fluctuate weakly in the short term. As of December 12th, the settlement price for the January contract of US WTI crude oil futures was $57.44 per barrel, and the settlement price for the February contract of Brent crude oil futures was $61.12 per barrel. While some PX (paraxylene) plants had restarted after short shutdowns, and the blending market had cooled somewhat, increased maintenance at PX plants in the future is expected to lead to lower operating rates, providing some support to prices.

The domestic PTA market experienced slight downward fluctuations. As of December 15th, the spot price of PTA in East China was 4,649 RMB/ton, a decrease of 1.13% compared to the beginning of the month. In terms of supply, there were no plans for adjustments to new PTA facilities, and some plants that were shut down in November had not yet restarted, such as the Yisheng Ningbo 2.2 million-ton plant (shut down on November 20th), the Dushan Energy 2.5 million-ton plant (shut down on November 5th), and the Zhuhai BP 1.1 million-ton plant (shut down on November 6th). Supply remained stable, with the overall industry operating rate around 73%.

Since the beginning of December, market demand was weak, and downstream yarn factories had only been making basic purchases. Polyester yarn factories had reported average sales, with some indicating that new orders were slow and they were facing significant sales pressure recently. Terminal weaving companies had shown decreased enthusiasm for raw material procurement and there was no concentrated large-scale restocking.

Market Outlook

According to analysts at SunSirs, the approaching Christmas season is expected to bring a seasonal increase in demand, which may support oil prices. However, with the gradual approach of the off-season for demand, a decline in weaving operating rates is anticipated, and polyester staple fiber prices are expected to weaken.

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