According to the Commodity Market Analysis System of Shengyi Society, the domestic polyester staple fiber market has fluctuated and adjusted weakly since November. As of November 19th, the average price of 1.4D * 38mm in mainstream factories in Jiangsu and Zhejiang was 7226 yuan/ton, a decrease of 0.34% from the beginning of the month.
Due to weak cost adjustments, there is insufficient support for the cost of polyester staple fibers. The supply side and circulation of polyester staple fibers are relatively loose, and downstream demand is gradually weakening, resulting in low purchasing enthusiasm. The market has a strong negative sentiment, which has dragged down the price of polyester staple fibers.
Looking at the future, international crude oil prices on the cost side have declined. As of November 18th, the settlement price of the main contract for WTI crude oil futures in the United States was $69.17 per barrel, and the settlement price of the main contract for Brent crude oil futures was $73.30 per barrel. There is an expectation of further increase in PX supply in Asia, and the pressure on domestic PX inventory is rising. In recent years, negotiations for annual contracts have begun, and a cautious trading atmosphere is evident.
As of November 19th, the average market price of PTA in the East China region of China was 4797 yuan/ton, a decrease of 2.09% from the beginning of the month. PTA has started to accumulate inventory, and according to statistics, the current social inventory is around 4.01 million tons. Maintenance facilities have been restarted one after another, increasing expectations of loose supply. The current industry operating rate is around 85%.
As late November approaches, the demand in the textile industry is still in the traditional off-season, and yarn mills have reduced their rigid demand for polyester staple fibers. With the end of the shopping festival, the terminal textile industry focuses on the urgent need for e-commerce orders, the clearance of raw fabric inventory, and the procurement of raw materials. Most manufacturers have reported that the order volume this year is lower than in previous years, and there is some support for domestic demand for thermal insulation fabrics. Considering the subsequent tariff issues for foreign trade orders, some orders are issued in advance but can only be processed on an average basis. The comprehensive operating rate of chemical fiber weaving in Jiangsu and Zhejiang regions has slightly declined to 76%.
Business analysts believe that the cost driven market is bearish, coupled with the end of the peak consumption season, and the weakening of cost and supply and demand structure coexists. It is expected that the price of polyester staple fiber will continue to show a downward trend in the short term.
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