SunSirs: The Terminal Demand Was Gradually Decreasing, and the Price of Polyester Staple Fiber Was Maintaining a Downward Trend

Price trend

According to the Commodity Market Analysis System of SunSirs, the domestic polyester staple fiber market maintained a slight decline this week (October 23-27). As of October 27, the average price of 1.4D * 38mm in mainstream factories in Jiangsu and Zhejiang was 7,642 RMB/ton, a decrease of 0.91% compared to the beginning of the week.

Analysis review

Recently, crude oil prices had fluctuated repeatedly around the conflict between Palestine and Israel, as well as expectations of weaker demand. On October 26th, the settlement price of the main contract for WTI crude oil futures in the United States was at 83.21 US dollars per barrel, while the settlement price of the main contract for Brent crude oil futures was at 87.05 US dollars per barrel. Hengli's 2.2 million ton PTA device had been delayed in restarting and contract goods had been reduced, resulting in a reduction in supply. This week, the domestic PTA market stopped falling and slightly rebounded. As of October 27th, the average market price in East China was 5,875 RMB/ton, an increase of 0.42% compared to the beginning of the week.

As the end of October approached, terminals were gradually weakening, and the "Double Eleven" and Christmas promotion effects were limited, resulting in insufficient motivation to undertake new orders. After the inventory of textile enterprises increased, recent discounts had increased, and the price of pure polyester yarn remained stable and weaker. As of October 27th, the reference price for pure polyester yarn in the Shandong region was 12,775 RMB/ton, a decrease of 0.58% compared to the beginning of the week. With the weakening of raw material prices, the enthusiasm for restocking had decreased, and only the demand maintained purchasing goods on demand.

Market outlook

Analysts from SunSirs believe that in the future, increased supply and weak demand will create a drag on the polyester staple fiber market. Recently, there was a new device feeding plan for polyester staple fibers, and it is expected that the construction trend will improve and the supply will increase. In addition, as the traditional peak season in the downstream market approached its end and enter November, the demand for the textile market will significantly weaken, and the demand for polyester staple fibers will gradually decrease. It is expected that the polyester staple fiber market will continue to be adjusted weaker in the short term.

If you have any questions, please feel free to contact SunSirs with support@SunSirs.com.