June 28 News
This week (June 22-28), the market price of polyester staple fiber continued to decline. According to the commodity market analysis system, as of June 28, the average market price of polyester staple fiber (1.4D*38mm) in China was 7,452 CNY per ton, a decrease of 0.91% from the beginning of the week.
On the cost side, the geopolitical premium for crude oil has subsided. As of June 25, the settlement price for the August contract of U.S. WTI crude oil futures stood at $71.92 per barrel, while the settlement price for the September contract of Brent crude oil futures was $75.50 per barrel. With geopolitical tensions easing and the risk of disruptions to shipping through the Red Sea and the Strait of Hormuz declining, international crude oil prices have experienced a rapid pullback from their previous high levels.
Asian PX and PTA prices followed crude oil in weakening trends. This week (June 22-28), the Chinese PTA market generally continued its downward trajectory. As of June 28, the average spot price of PTA in the East China region stood at 5,734 CNY per ton, down 5.10% from the beginning of the week. On the supply side, maintenance shutdowns and resumption of production are in a delicate balance, with low inventory levels providing only weak support. Industry operating rates remain relatively low, hovering around 64%. Factory inventories continue to decline, and spot inventory levels remain low.
On the demand side, we remain in June—the traditional off-season for textiles—where demand continues to be weak and shows no signs of recovery. In the Jiangsu and Zhejiang regions, loom utilization rates remain low, and raw fabric inventories continue to accumulate. Downstream yarn orders have weakened, and quotations for pure polyester yarn have been gradually lowered, with prices negotiated on a case-by-case basis and bulk discounts offered. Dealers are mostly adopting a wait-and-see approach. With inventories remaining relatively high, yarn mills are prioritizing inventory clearance and showing little willingness to raise prices.
Analysts believe that, in the short term, crude oil volatility will continue to be the dominant factor. With weakening cost support and the textile industry entering its traditional off-season, the combination of these bearish factors will likely keep polyester staple fiber prices predominantly volatile and trending downward.
Additionally, according to Xianhuotong, the 10-day moving average has crossed below the 20-day moving average, and the difference between the two averages continues to widen in a negative direction. The 10-day and 20-day moving averages are diverging further, indicating that the polyester staple fiber market is entering a downward trend.
