SunSirs: Lack of Upward Momentum in Fundamentals, Polyester Staple Fiber Prices May Maintain a Downward Trend

https://www.chemnet.com   Nov 29,2024 SunSirs

Price trend

According to the Commodity Market Analysis System of SunSirs, the domestic polyester staple fiber market has experienced a slight decline since mid November. As of November 28th, the average price of 1.4D * 38mm in mainstream factories in Jiangsu and Zhejiang was 7,176 RMB/ton, a decrease of 0.92% from November 12th. Cost fluctuations have weakened, providing insufficient support for the cost of polyester staple fibers. The company had sufficient supply of circulating goods, resulting in relatively weak downstream demand and weakened supply and demand, leading to a fluctuating decline in staple fiber prices.

Analysis review

In the international crude oil market, with the easing of geopolitical issues in the Middle East and a slight decline in crude oil prices, the support for PTA costs has slowed down. As of November 26th, the settlement price of the main contract for WTI crude oil futures in the United States was 68.77 US dollars per barrel, and the settlement price of the main contract for Brent crude oil futures was 72.81 US dollars per barrel.

Since November, there has been an increase in domestic PTA supply, with over 10 million tons of PTA plants being restarted one after another, and the industry operating rate was close to 90%. The new PTA production capacity of 2.7 million tons in the East China region was also about to be put into operation, and the PTA supply was still abundant, which was bearish on spot prices. According to the Commodity Market Analysis System of SunSirs, as of November 28th, the average market price in East China was 4,741 RMB/ton, a decrease of 3.24% from the beginning of the month.

The overall performance of the terminal textile industry was poor, and the industry demand was still in the traditional off-season. Downstream yarn mills maintained their demand for essential purchases. In terms of orders, domestic autumn and winter orders were coming to an end, and the enthusiasm for raw material stocking was insufficient. The demand for foreign trade orders still existed, but it has narrowed compared to the same period last year.

Market outlook

SunSirs’ analysts believe that the cost side was weakening and adjusting, downstream purchases continued to be cautious, and market fundamentals lacked upward drivers. Therefore, the price of polyester staple fibers may continue to adjust downward.

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