Cost Side Rebounds, Polyester Staple Fiber Prices Rise Slightly

October 27th, according to reports

According to the commodity market analysis system, this week (October 20-24) the price of polyester staple fiber in China rose slightly. As of October 24, the average market price of polyester staple fiber (1.4D*38mm) was 6,314 CNY per ton, an increase of 0.38% from the beginning of the week.

U.S. commercial crude oil inventories fell, and combined with easing concerns over trade tensions, international oil prices rose. On October 23, the settlement price for the December contract of U.S. WTI crude oil futures was $61.79 per barrel, while the December contract for Brent crude oil futures settled at $65.99 per barrel.

Oil price strength has boosted PTA prices. As of October 24, the PTA spot price in East China was 4,468 CNY/ton, up 2.41% from the beginning of the week. In terms of domestic supply, the 2.2 million-ton facility of Yisheng Ningbo reduced its load to 80% on October 17, while the 3.6 million-ton facility of Yisheng New Materials resumed operations on October 14. The overall industry operating rate is around 75%. Subsequently, Sichuan Energy Investment's 1 million-ton and Ineos' 1.1 million-ton facilities have maintenance plans for October, and the new 3 million-ton facility of Dushan Energy is scheduled to start commissioning next week. Attention should be paid to the actual implementation.

On the demand side, most textile companies are seeing reasonably good order performance, though subsequent orders have shown slight weakness. As a result, yarn factories are currently holding steady on their price quotes, with actual transactions largely following market trends. Meanwhile, end-market weaving orders have recently improved slightly as colder weather sets in, leading to a temporary boost in buyer sentiment. However, product differentiation remains significant, and overall demand still falls short of levels seen during the same period last year. Many companies are primarily focused on working off their existing inventories of raw materials from earlier periods, maintaining only essential procurement needs for new supplies.

Analysts believe that the strengthening of polyester staple fiber prices is mainly due to the recovery in the cost side. Looking ahead, short-term support from the cost side still exists, and downstream demand is expected to improve as the weather turns colder, with a structural recovery in domestic sales and an improvement in autumn and winter orders. Therefore, there is an expectation for a continued rebound in the polyester staple fiber market in the short term.