Cost Benefits Provide Support, Leading to a Significant Rise in Polyester Staple Fiber Prices

December 29th news

According to the commodity market analysis system, the polyester staple fiber market showed a significant increase starting from mid-December. By the end of December, the average market price of polyester staple fiber (1.4D*38mm) in China was 6,503 CNY per ton, an increase of 3.77% compared to December 16th.

Supported by favorable cost factors, crude oil has staged a rebound from its recent low. As of December 26, the settlement price for the February contract of U.S. WTI crude oil futures stood at $56.74 per barrel, while the settlement price for the February contract of Brent crude oil futures reached $60.60 per barrel. Although the situation between the U.S. and Venezuela remains unstable, it is not expected to escalate fully in the short term. Moreover, there are expectations of easing tensions in the Russia-Ukraine conflict, which will also weaken the geopolitical factors' support for oil prices.

In mid-December, PTA prices continued to strengthen. By the end of December, the PTA spot price in East China was 5045 CNY/ton, an increase of 9.16% from December 16th. The supply and demand pressure for PTA is not significant. With low processing fees, major factories have implemented measures such as proactive shutdowns for maintenance and load control. PTA plant maintenance was more concentrated in November and December. As of December 29th, the PTA operating rate was around 72%, and the market supply is expected to continue to decrease. Currently, PTA inventory continues to decline. Although there may be a slight inventory accumulation in January and February due to the seasonal reduction in downstream polyester production, the overall inventory pressure remains low, and the fundamentals are solid.

Downstream yarn factories are cautious about chasing high prices and have a certain level of raw material inventory, resulting in weak purchasing demand and insufficient momentum to push prices higher. After mid-month, the decline in production load has accelerated. Winter orders for terminal weaving have basically ended, and due to the later timing of the 2026 Chinese New Year, spring orders have generally been delayed. Currently, weaving companies mainly receive small, urgent orders. Under a bearish expectation, some textile factories may take early holidays, leading to a significant seasonal decline in demand.

Analysts believe that cost support still exists, but as the textile off-season deepens, the enthusiasm of downstream buyers to chase higher prices is increasingly being hindered. It is expected that the price increase of polyester staple fiber will narrow in the short term.