Fundamentals Weaken, Adjusting; Polyester Staple Fiber Prices Slightly Decline

December 15 news

According to the commodity market analysis system, in December, the price of polyester staple fiber in China has slightly decreased. As of December 15, the average market price of polyester staple fiber (1.4D*38mm) is 6,270 CNY/ton, a decrease of 0.86% from the beginning of the month.

Recent crude oil supply-side risks have not been eliminated, and concerns over reduced crude oil supply due to geopolitical tensions continue to support oil prices. However, there has been no improvement in crude oil demand. Overall, international oil prices are expected to remain weak and volatile in the short term. As of December 12, the settlement price for the January contract of U.S. WTI crude oil futures was $57.44 per barrel, and the settlement price for the February contract of Brent crude oil futures was $61.12 per barrel. Some PX plants have restarted after short shutdowns, and the blending atmosphere has cooled somewhat. However, with more PX plant maintenance expected, there is a forecast of reduced operating rates, providing some bottom support.

The Chinese PTA market showed a slight downward fluctuation. As of December 15, the spot price of PTA in East China was 4,649 CNY/ton, a decrease of 1.13% from the beginning of the month. In terms of supply, there are no new PTA units with adjustment plans. Some units that were shut down in November have not yet restarted, such as the 2.2 million ton unit of Yisheng Ningbo, which stopped on November 20; the 2.5 million ton unit of Dushan Energy, which stopped on November 5; and the 1.1 million ton unit of Zhuhai BP, which stopped on November 6. The supply remains stable, with the overall industry operating rate around 73%.

Since entering December, the market has seen weak demand, with downstream yarn mills limiting themselves to basic procurement only. Sales from pure polyester yarn mills have been generally moderate, and some yarn mills report that new orders are average, indicating considerable sales pressure recently. End-use textile manufacturers have become less active in raw material purchasing, and there’s been no sign of large-scale, concentrated restocking.

Analysts believe that as Christmas approaches, seasonal demand is picking up, which may support oil prices. However, with the approaching low-demand season, there is an expectation of a decline in weaving machine operating rates, and it is predicted that the price of polyester staple fiber may show a weakening trend.