Increased Cost-Side Support Drives Up Prices of Polyester Staple Fiber

August 23, news

According to the commodity market analysis system, this week (August 18-22) the price of polyester staple fiber in China fluctuated and rose. As of August 22, the average market price of polyester staple fiber (1.4D*38mm) in China was 6,562 CNY per ton, an increase of 1.4% from the beginning of the week.

Costs have been rising, and this week the PTA market in China has shown a slight recovery, with the average price of PTA in the East China region at 4,771 CNY/ton, an increase of 1.08% from the beginning of the week. The overall fundamentals of PTA have improved, with the overseas supply of PX, a cost component, becoming slightly tighter, and the commissioning expectations for new PTA facilities outside China are increasing, supporting demand and gradually strengthening PX. PTA plants in East China and South China have delayed restarts and shutdowns, optimizing their own supply structure. Downstream polyester demand remains stable and robust, with increased production and sales. Combined with recent improvements in macroeconomic drivers that have boosted commodity sentiment, these factors have together pushed PTA prices up slightly.

Downstream yarn factories are showing increased resistance, mainly focusing on replenishing essential inventory. Since August, with the easing of tariffs, orders for autumn and winter fabrics and foreign trade home textiles have gradually increased, and the operating rate of the main weaving industry in Jiangsu and Zhejiang is around 52%. However, the inventory of regular gray cloth held by intermediaries and factories remains high, and the overall follow-up of new orders is limited, leaving little room for further increases in production load. Moreover, the actual placement of large orders remains weak. In this context, yarn factories prioritize cash recovery, making it difficult to see a significant increase in actual demand.

Analysts believe that PTA is experiencing a phased improvement in supply and demand, with increased support from the cost side. With the traditional peak demand season of September and October approaching, there are expectations for demand in September. Among these, the rigid orders for early winter home wear and bedding fabrics are being released gradually, while autumn clothing orders are entering a concentrated shipping period. These factors will jointly contribute to a continued warming of the overall market atmosphere, and it is expected that the price of polyester staple fiber will remain strong in the short term.