Downstream Rigid Demand Procurement: Cautiously Observing—Polyester Staple Fiber Prices Slightly Weaken

April 20th, news:

Commodity market analysis system, since April, the Chinese polyester staple fiber market has shown a fluctuating downward trend. As of April 20th, the average market price for Chinese polyester staple fiber (1.4D*38mm) is 8,104 CNY/ton, a decrease of 2.25% from the beginning of the month.

The advancement of U.S.-Iran negotiations will gradually reduce the geopolitical premium, causing international crude oil prices to fluctuate at high levels before eventually easing. As of April 17, the settlement price for the June contract of U.S. WTI crude oil futures was $82.59 per barrel, while the settlement price for the June contract of Brent crude oil futures was $90.38 per barrel.

The spot price of PTA in the East China region is 6508 CNY/ton, a decrease of 1.41% from the beginning of the month. In April, the industry welcomes a concentrated maintenance season for PTA, with major capacities from Yisheng, Hengli, and Ineos undergoing maintenance. Large facilities of leading enterprises are gradually shutting down for maintenance, reducing the industry's operating load from 85% to around 70%. Additionally, with no new PTA capacity being added in China in 2026, the industry's supply continues to contract, shifting social inventory from accumulation to destocking, providing bottom support for prices.

Geopolitical situations are volatile, with costs remaining high and fluctuating. Downstream market demand is weak, and there is insufficient effective inquiry, so the yarn factories' operations are temporarily stable. The end-users are in the traditional low season of the textile industry, with insufficient foreign trade orders, and looms in Jiangsu and Zhejiang are operating at only 60-70% capacity. The procurement of raw materials is mainly based on necessity, and the transmission of high-priced raw materials to downstream is hindered, dragging down the market due to weak demand.

Analysts believe that in the short term, China's PTA supply is expected to remain reduced, with cost support still in place. However, downstream demand is mostly rigid, with cautious observation prevailing.

Additionally, according to Xianhuotong, the 10-day moving average for polyester staple fiber has recently crossed below the 20-day moving average, though the range has narrowed somewhat, indicating upward momentum is building.

From a positional perspective, it is at a high level in the past year, and recently it has been in a medium-low position. Subsequently, it is necessary to closely monitor the changes in the geopolitical situation in the Middle East and the order situation during the peak textile season in May in China.