SunSirs: There Was Currently No Significant Improvement in Fundamentals, and Prices of Polyester Staple Fibers Will Continue to Decline

Price trend

According to the Commodity Market Analysis System of SunSirs, the domestic polyester staple fiber market prices had recently rebounded slightly, but maintained a downward trend. As of October 25th, the average price quoted by 1.4D * 38mm polyester staple fiber factories was 7,642 RMB/ton, a decrease of 1.04% compared to October 16th.

Analysis review

As of October 24th, the settlement price of the main contract for WTI crude oil futures in the United States was 83.74 US dollars per barrel, while the settlement price for Brent crude oil futures was 88.07 US dollars per barrel. The overall supply of PTA goods was sufficient, coupled with weakened crude oil support, but the overall atmosphere of the commodity market was good, PTA had undergone a narrow adjustment, with an average market price of 5,850 RMB/ton in East China on October 25th.

The "Silver October" was over half way through, and the downstream yarn market was still lacking in large orders. Most enterprises had reported that the recovery of the final payment was taking a long time, and the pressure on finished product inventory had increased. The shipment from the yarn factory was average, with fewer orders. They were cautious about the price of raw materials and maintained a focus on just demand. In terms of price, the reference price of pure polyester yarn in the Shandong region remained stable, with an average price of around 12,850 RMB/ton in the 32S market.

Market outlook

Analysts from SunSirs believe that in the short term, polyester staple fiber prices will fluctuate and decline under the combined pressure of reduced costs and demand. Entering the end of the traditional textile peak season in November, the cotton mills are facing a shortage of orders, accumulated inventory, and expectations of a decline in production. Next, there is a plan for the production of a new polyester plant, and there may be an increase in supply. There is currently no significant positive boost in the fundamentals, and it is expected that the price of polyester staple fibers may fluctuate downward.

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