SunSirs: Supported by Favorable Cost Factors, the Price of Polyester Staple Fiber Rose Significantly

Price trend

According to the business data analysis system of SunSirs, the polyester staple fiber market showed a significant upward trend starting in mid-December. As of the end of December, the average price of domestic polyester staple fiber (1.4D*38mm) was 6,503 RMB/ton, a 3.77% increase compared to December 16th.

Market Analysis

Supported by positive factors on the cost side, crude oil prices rebounded from their recent lows. As of December 26th, the settlement price for the February contract of US WTI crude oil futures was $56.74 per barrel, and the settlement price for the February contract of Brent crude oil futures was $60.60 per barrel. As of December 29, the situation between the US and Venezuela was unstable, but a full-scale escalation is not expected in the short term. Furthermore, there are expectations of a de-escalation in the Russia-Ukraine conflict, which will weaken the geopolitical support for oil prices.

Starting in mid-December, PTA prices continued to strengthen. By the end of December, the spot price of PTA in East China reached 5,045 RMB/ton, a 9.16% increase compared to December 16th. The supply and demand pressure for PTA was not significant, and under low processing margins, mainstream factories had actively reduced production through planned shutdowns and maintenance.  PTA plant maintenance was concentrated in November and December. As of December 29th, the PTA operating rate was around 72%, and market supply is expected to continue to decrease. As of December 29th, PTA inventories were continuously declining. Although there may be a slight increase in inventory in January-February due to seasonal reductions in downstream polyester production, the overall inventory pressure remained low, and the fundamentals were stable.

Downstream yarn factories were cautious about chasing higher prices and had a certain level of raw material inventory, resulting in weak purchasing demand and insufficient momentum for further price increases. The decline in production capacity accelerated after the middle of the month. Terminal weaving factories have largely completed their winter orders, and due to the later timing of the 2026 Chinese New Year, spring orders are generally delayed. As of December 29th, weaving companies' orders mainly consisted of small-batch urgent orders, and under bearish expectations, some textile factories may close for the holidays earlier, indicating a significant seasonal slowdown in demand.

Market Outlook:

According to analysts at SunSirs, cost support remained, but as the textile off-season deepened, downstream buyers were becoming less willing to accept price increases. Therefore, it is expected that the price increase of polyester staple fiber will narrow in the short term.

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