Cost support has weakened, and the market for polyester staple fiber has maintained a slight decline. According to the Commodity Market Analysis System of Shengyi Society, as of February 24th, the average market price of domestic polyester staple fiber (1.4D * 38mm) was 6948 yuan/ton, a decrease of 0.48% from the previous trading day. The price of polyester short factories is temporarily stable, with the average ex factory price of mainstream factories in Jiangsu and Zhejiang regions at 7276 yuan/ton.
The geopolitical risks in the Middle East have decreased, oil price premiums have fallen, and the increase in US crude oil inventories has affected investor confidence. On February 21st, international crude oil futures plummeted, with the settlement price of the main contract of WTI crude oil futures in the United States at $70.40 per barrel, a decrease of $2.08 or 2.9%. The settlement price of the main Brent crude oil futures contract was $74.43 per barrel, a decrease of $2.05 or 2.7%.
The domestic PTA market followed suit, with an average market price of 5036 yuan/ton in East China on February 24th, a decrease of 1.09% from the previous trading day. The closing price of PTA main futures TA2505 was 5058 yuan/ton, a decrease of 90 yuan/ton, a decrease of 1.75%, with a settlement price of 5074 yuan/ton and a daily increase of 4230 lots. In terms of self supply, two sets of PTA plants with a total capacity of 5 million tons in southern China were shut down for maintenance as planned in mid February. Some PTA plants were restarted this week, and there is sufficient stock supply. And recently, PTA’s main suppliers have delivered more spot goods, resulting in a significant increase in spot circulation.
The maintenance and restart of the polyester staple fiber device coexist, and the supply is relatively loose. Downstream spinning factories have resumed work and production, but the overall textile market has been slow to start due to limited new orders, funding issues, and labor shortages. The overall resumption pace is slightly later than in previous years, and the demand for polyester staple fibers is weak. The weaving operation rate in Jiangsu and Zhejiang is around 60%. In terms of orders, post holiday spring and summer orders fell short of expectations and are mostly in a wait-and-see state. There are no obvious signs of large orders being placed for spring and summer, and weaving manufacturers have fewer new orders. The weak supply and demand structure has dragged down market sentiment.
Business analysts believe that from a cost perspective, the market is concerned about the progress of geopolitical negotiations, and international oil prices may continue to fluctuate. Under the low processing fee, attention still needs to be paid to unplanned PTA plant maintenance. In addition, with the arrival of the “Golden Three Silver Four”, it is expected that the demand for textile and clothing essential orders will gradually increase slowly, and it is expected that the price of polyester staple fibers will remain weak in the short term.
| http://www.pva-china.net |