SunSirs: Cost Was Weak, Polyester Staple Fiber Weakened in Shock (October 17-21)

Price trend

Spot price: This week (10.17-10.21), the spot market of domestic polyester staple fiber was fluctuating and falling. According to the price monitoring of SunSirs, the average price of domestic polyester staple fiber was about 7,922 RMB/ton on October 21, down 1.61% from Monday and down 4.73% from the same period last year.

Futures market: the main force of polyester staple fiber futures this week ended lower in shock. On Friday, the main contract of polyester staple fiber PF futures closed at 7136, down 3.41% from the closing price last week. The settlement price was 7184. This week, the main force of PTA futures of domestic polyester staple upstream raw materials fell 3.16% to close at 5,334, and the main force of ethylene glycol futures fell 0.86% to close at 4,038.

Analysis review

The price of international crude oil futures fell slightly this week due to the impact of the release of strategic crude oil reserves in the United States and the weak expectation of future demand. The main force of US oil futures fell about 2% to close near 83.9 US dollars per barrel (as of 16:00 on the 21st Beijing time).

Recently, the load of domestic PTA devices increased, and there was an expectation that new devices would be put into production in the future. The supply was relatively loose compared with the previous period. The downstream starting load was at a low level compared with previous years. The overall performance was not strong in the peak season. Although the demand for raw materials had improved, the overall demand was still weak. The cost was weak, and PTA prices fell slightly.

This week, the overall operating rate of ethylene glycol in China increased with the restart load of some units, and the production of new units in Shaanxi also put pressure on supply. Downstream demand was still tepid, and the price of ethylene glycol was downward under pressure.

This week, some early maintenance devices of polyester staple fiber were restarted, the operating rate rose, downstream orders were limited, raw materials were maintained in rigid demand, mainly replenishment, and staple fiber prices fell back. The operating rate of the downstream did not change much recently. The market prices of pure polyester yarn and polyester cotton yarn were relatively stable. The overall trading situation was general, mainly focusing on sales promotion, and mainly on non Xinjiang traceability and inquiry of renewable orders.

Market outlook

Recently, the cost support of polyester staple fiber is weak, and the unit load is expected to rise in the later period. Although the downstream is in the traditional peak season, the order performance is lower than that of the same period in previous years, and the price of polyester staple fiber may show a weak oscillation trend in the short term. Pay attention to the price trend of raw materials and downstream orders.

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