SunSirs: Cost Support Strengthened, and Polyester Staple Fiber Prices Stopped Falling and Rebounded

Price trend

The cost side was improving, and downstream restocking brought about increased production and sales, boosting the price of polyester staple fibers to stop falling and recover. According to the Commodity Market Analysis System of SunSirs, the average ex factory price as of June 15th was 7,368 RMB/ton, an increase of 0.34% compared to the previous day.

Analysis review

In terms of PX, Zhejiang Petrochemical's unplanned reduction in production had caused supply concerns. The strong transaction price of PX squeezed the PTA spot processing fee to below 200 RMB, resulting in a decrease in the enthusiasm for PTA plant construction. As of 15th, the industry's construction was below 80%. Among them, Yisheng Dahua's 2#, 3.75 million ton device had reduced its load to 50%, William Chemical's 2.5 million ton device malfunctioned and shut down on June 14th, and Jiatong Energy's 1 #, 2.5 million ton device will also be repaired for a period of 15 days nearby. In terms of price, as of June 15, the market price in East China was 5,737 RMB/ton, up 0.54% from the previous day.

Driven by the trend of "buying up instead of buying down", downstream yarn enterprises had made periodic replenishment actions. However, under the traditional off-season of high temperature and humidity, terminal demand had not significantly improved, and orders were mainly in small batches. As of 15th, the recovery of foreign trade orders was not significant, and there was still some pressure. The accelerated recovery of textile supply chains in Southeast Asia and South Asia had led to fierce international competition in China's textile industry. From January to April, China's cumulative exports of textiles and clothing reached 92.9 billion US dollars, a year-on-year decrease of 2.9%.

Market outlook

Analysts from SunSirs believe that there was an expectation of production reduction in major raw material PX factories in July, coupled with PTA production still being at a low level, and the support for polyester short term costs was still relatively strong. However, the continuity of downstream procurement was not strong, and procurement was mainly on demand. In the future, there is limited room for the price rebound of polyester staple fibers.

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