Following Cost Fluctuations, Polyester Staple Fiber Prices in China Adjusted Weaker in August

August 31, News

According to the commodity market analysis system, in August, the price of polyester staple fiber in China fluctuated and adjusted. As of August 31, the average market price of polyester staple fiber (1.4D*38mm) in China was 6,536 CNY/ton, a decrease of 0.61% from the beginning of the month. In August, the price of polyester staple fiber followed the cost fluctuations, showing a trend of first falling, then rising, and finally retreating.

The crude oil market is caught in a tug-of-war between bullish and bearish factors, leaving it poised for a complex outlook in the near term. On the supply side, geopolitical risks between Russia and Ukraine have intensified due to Trump’s deadline for negotiations, heightening concerns about potential supply disruptions. Meanwhile, on the demand side, both U.S. crude oil inventories and Cushing crude stocks have declined, while the Strategic Petroleum Reserve has seen an increase—providing some support for oil prices. However, U.S. tariffs imposed on Indian purchases of Russian crude could pose a challenge. As of August 26, the settlement price for the October WTI crude oil futures contract stood at $63.25 per barrel, while the October Brent crude oil futures settled at $67.22 per barrel. Moving forward, close attention will remain crucial on the evolving Russia-Ukraine situation, as well as the policy guidance expected from the OPEC meeting on September 7.

After a downturn, the Chinese PTA market rebounded. As of August 29, the average PTA price in the East China region stood at 4,891 CNY per ton, up 1.45% from the beginning of the month.

In the first half of the month, OPEC+ announced increased production, leading to consecutive declines in crude oil prices. Combined with expectations of rising inventory levels, these factors weighed heavily on market prices, causing them to fall. However, in the latter half of the month, as the petrochemical industry began to counteract internal competition and unplanned losses occurred at certain PTA plants, prices surged significantly.

By the end of the month, concerns about weakening supply and demand pushed prices back down from their earlier highs. On the supply side, some plants underwent maintenance, keeping the industry’s operating rate around 68%. Despite this, market supply remained steady, with no signs of tightness. Looking ahead, three major PTA units—each with capacities of 2.25 million tons, 2.2 million tons, and 4.5 million tons—will gradually resume operations in early September, shifting the industry’s supply-demand dynamics from destocking toward a more balanced state.

On the demand side, the downstream weaving industry has entered its traditional off-season, while end-market consumption of textiles and apparel remains sluggish. This slow trickle-down effect means polyester staple fiber purchases are primarily driven by immediate needs rather than large-scale stockpiling. Meanwhile, ongoing tariff disputes continue to weigh on exports of finished textiles and apparel, raising concerns about whether the peak season in September will kick off as scheduled—and potentially boosting the staple fiber market. If terminal demand fails to show meaningful improvement in September, or if weaving companies report weaker-than-expected order growth, the much-anticipated "peak-season rally" for staple fiber may fall short of expectations. As a result, the market could remain weak overall.

Analysts believe that with the return of PTA maintenance facilities in September, there are still uncertainties regarding maintenance, and supply may come under pressure. The downstream market is looking forward to the traditional peak season in September to inject a boost into the market. However, in the absence of clear directional guidance, it is expected that the short-term prices of polyester staple fiber will continue to adjust within a narrow range.