Price trend

According to the business data analysis system of SunSirs, the polyester staple fiber market experienced a decline followed by a rise in January. As of January 31st, the average market price of domestic polyester staple fiber (1.4D*38mm) was 6,649 RMB/ton, a 2.19% increase compared to the beginning of the month. At the beginning of the month, insufficient demand support led to a narrow downward adjustment in prices. From the latter half of the month onwards, stronger cost support and a general improvement in market sentiment, coupled with favorable capital flows, boosted short fiber prices.

Market analysis

International crude oil prices were rising. As of January 29th, the settlement price for the March contract of US WTI crude oil futures was $65.42 per barrel, and the settlement price for the April contract of Brent crude oil futures was $69.59 per barrel. The crude oil market was being driven by a combination of positive factors, including supply disruptions caused by winter storms in the United States and escalating geopolitical tensions in the Middle East. The core drivers were significant short-term supply disruptions, coupled with a rebound in geopolitical risk premiums, leading to a concentrated release of bullish sentiment and a sustained upward trend in crude oil prices.

In January, the domestic PTA market fluctuated in line with crude oil prices. As of January 31st, the spot price of PTA in East China was 5,298 RMB/ton, a 4.33% increase compared to the beginning of the month. Regarding supply, the PTA industry's operating rate was 75% at the end of the month. Hanbang Petrochemical's 2.2 million-ton plant shut down on January 6th, Yisheng New Materials' 3.6 million-ton plant shut down on January 14th, Dushan Energy's 3 million-ton plant restarted on January 14th, and Zhuhai BP's 1.25 million-ton plant shut down on January 16th. As of January 31, there were no significant changes in supply. With the continued reduction in downstream polyester production, the range of downstream polyester operating rates was expanding, and it is expected that PTA social inventory accumulation will also increase.

Driven by a significant rebound in the price of polyester staple fiber raw materials, downstream yarn manufacturers were forced to try to pass on the risk of soaring raw material costs to downstream customers in order to maintain profitability or minimize losses. However, due to the increasingly strong holiday atmosphere at the consumer end, production restrictions and shutdowns were entering their final stages. As of January 31, textile terminal orders were weak, profit margins were thin, and with the Spring Festival approaching, weaving enterprises will gradually close for the holidays, leading to a near-halt in terminal production. Buyers were showing strong resistance to price increases, and market inquiries and transactions were rapidly declining.

Market Outlook:

According to analysts at the SunSirs, polyester staple fiber prices are expected to mainly fluctuate in line with raw material prices in the short term. Recently, there has been a noticeable seasonal decline in demand from the textile industry, while short-staple fiber supply remains high. Therefore, with supply and demand expected to weaken marginally, the upward potential for polyester staple fiber prices is limited.

If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.