Following Cost Fluctuations, Polyester Staple Fiber Prices Stop Falling and Rebound

September 27, News

According to the commodity market analysis system, this week (September 22-26) the price of polyester staple fiber in China first fell and then rose. As of September 26, the average market price of polyester staple fiber (1.4D*38mm) was 6,441 CNY per ton, a decrease of 0.01% from the beginning of the week.

The ongoing Russia-Ukraine conflict in the international crude oil market has triggered potential supply risks, coupled with a decrease in U.S. commercial crude oil inventories, leading to an increase in international oil prices. As of September 25, the settlement price for the November contract of U.S. WTI crude oil futures was $64.98 per barrel, and the settlement price for the December contract of Brent crude oil futures was $68.58 per barrel.

As of September 26, the average market price of PTA in the East China region was 4,639 CNY/ton, an increase of 0.28% from the beginning of the week. At the start of the week, due to the restart of some facilities and the weakening of crude oil prices, the focus of PTA prices shifted downward. By mid-week, with the rebound in oil prices, a warmer sentiment towards commodities, and an increase in pre-holiday stocking demand downstream, the trend for PTA saw some improvement.

Downstream yarn factories have seen an increase in purchasing enthusiasm, with the upcoming long holiday season leading to some restocking needs, and market transaction atmosphere has improved. New orders have slightly improved, and finished goods inventory has decreased. Orders during the traditional peak season have improved, providing some short-term support on the demand side, but the speed of destocking is relatively slow, and the sustainability remains to be observed. The expectations for new orders and load recovery are limited.

Analysts believe that the peak season for traditional U.S. fuel consumption is nearing its end, while supply-side risks remain unresolved, leading to mostly volatile and corrective movements in international oil prices in the short term. Additionally, there are expectations of increased supply for PX and PTA themselves, resulting in insufficient cost-side support. On the demand side, while conditions are improving temporarily, it’s crucial to monitor whether this uptick in orders at the terminal level can sustain over time. Overall, polyester staple fiber prices are expected to remain range-bound amid ongoing market volatility.