Polyester Staple Fiber Prices Rose Slightly in April

In April, the price of domestic polyester staple fiber showed a narrow fluctuation and closed up slightly. According to the price test of the business agency, the average domestic spot market price of polyester staple fiber on April 30 was 8025 CNY/ton, an increase of 1.30% from the price of 7922 at the beginning of the month and a year-on-year increase of 16.42%. In the futures market, the main staple fiber contract at the end of the month closed at 8026, up 3.99% from the beginning of the month.

The price increase of polyester staple fiber in April was mainly driven by cost: this month, international crude oil prices continued to fluctuate at a high level due to the expectation of tightening supply due to the conflict between Russia and Ukraine. In April, WTI crude oil rose by more than 5% (as of April 28). Oil traded above $100 for most of the trading day in April. The rise in oil prices drove the price of PTA, the upstream raw material of staple fiber, to rise, with the PTA period and spot month rising by 4.87% and 6.09% respectively. However, the trend of ethylene glycol was not good this month. The ethylene glycol futures fell by 3.10% month-on-month and the spot month by 5.93%.

In April, the domestic PTA market fluctuated upwards. In April, the restart and maintenance of domestic PTA plants coexisted, and the corresponding PTA enterprises' operating load remained at a low level. The operating rate of the PTA industry dropped from 74% at the beginning of the month to 67%, and rose slightly to 73% at the end of the month. Overall, the supply is still in a state of contraction. In April, the downstream polyester market was still weak, and many factories reduced production to around 77%. Product inventory has accumulated, losses have increased, and factories are under great pressure to ship out, and inventory has been at a high level in recent years. At the end of the month, as the problem of poor logistics gradually eased and the resumption of work and production began gradually, the comprehensive operating rate in Jiangsu and Zhejiang regions rebounded slightly, and the demand side improved.

In April, the focus of ethylene glycol prices fell, and the trading was deadlocked. This month, the main port of ethylene glycol has been concentrated, and the inventory of the main port has accumulated significantly. This month, the operating rate of ethylene glycol has declined, and the number of plant shutdowns has increased. Due to the low operating rate and limited logistics, the enthusiasm of polyester manufacturers to take delivery has been affected. The remaining MEG tank space in the port has continued to be tightened, and the overall supply is still slightly ample. . Downstream polyester's current demand for MEG is still weak. The average polyester polymerization rate in April is expected to be around 87%, but there are strong expectations.

In April, the pure polyester yarn market was slightly adjusted, the overall sales were weak, the goods were still negotiated and the inventory was high, and some factories were willing to reduce production later; As of April 29, the average market price of pure polyester yarn was 14,425 CNY/ton, down 0.35% from the beginning of the month and up 2.30% year-on-year. The average market price of polyester-cotton yarn was 21,140 CNY/ton, down 0.19% from the beginning of the month.

Market Outlook

In the short term, Russia's oil exports may drop sharply under the expectation of the EU's plan to implement a severe import ban. International oil prices may still be prone to rise and fall, and staple fiber cost support still exists. In terms of supply, due to the repeated domestic epidemics and poor logistics, the load reduction on the supply side of staple fiber is greater than that on the demand side. In terms of demand, downstream spinning mills and weaving enterprises are gradually under control as the domestic epidemic situation is gradually controlled, terminal orders have improved, inventories have gradually been destocked, and demand may gradually pick up. On the whole, under the support of the cost side and the expectation of demand recovery, it is expected that the staple fiber market will still fluctuate upward in May. Pay close attention to the adjustment of U.S. tariff policy, the situation in Russia and Ukraine, the epidemic situation and changes in raw material prices.