Weaker Costs, Mild Demand Pressure Keep Polyester Short-Fiber Price Focus Lower

November 23rd, according to reports

According to the commodity market analysis system, this week (November 17-23) the price of polyester staple fiber in China fluctuated and declined. As of November 23, the average market price of polyester staple fiber (1.4D*38mm) was 6,297 CNY/ton, a decrease of 0.06% from the beginning of the week.

Looking ahead, amid the prevailing oversupply in the crude oil market, oil prices are naturally poised for a downward shift. However, ongoing geopolitical factors continue to introduce uncertainty into the market, partially offsetting the downward pressure from the supply surplus. As a result, oil prices are expected to remain volatile, oscillating within a range. In the short term, high volatility is likely to persist.

As of November 20, the settlement price for the January WTI crude oil futures contract stood at $59.00 per barrel, while the February Brent crude oil futures contract settled at $62.80 per barrel.

This week, the PTA market in China saw a slight decline. As of November 23, the spot price of PTA in the East China region was 4,622 CNY/ton, down 0.53% from the beginning of the week. India's BIS has relaxed certification, and some PTA facilities have been shut down for maintenance earlier than planned, improving the supply structure and expected to boost export growth. However, prices are adjusting lower due to suppressed terminal demand.

Costs are being adjusted downward, and there is insufficient support from terminal orders. The demand for downstream yarn is relatively weak, with factories negotiating each order individually and adjusting discounts as appropriate. In terms of terminal operations, due to seasonal factors, the inventory of raw materials in enterprises in the Jiangsu and Zhejiang regions of China has decreased, and the atmosphere for new orders in the weaving sector has weakened in some areas.

Analysts believe that with fluctuations and adjustments in the cost side, there is limited support. As demand seasonally declines, terminal load slowly decreases, and insufficient weaving orders lead to weak purchasing intentions for raw materials by yarn factories, the price of polyester staple fiber will also remain relatively weak.