Polyester staple fiber peak season failed

[168TEX News] October is the traditional peak season. People in the polyester and short-sleeve industry hope to see the polyester and short-sleeve market reverse its predicament, with prices rising steadily, production and sales increasing, and profits improving. But the reality is cruel. Recently, polyester short-term prices have been approaching the bottom of the year. Demand is still weak, and production and sales continue to be sluggish. In order to avoid the risk of continued inventory accumulation in the future, holders have gradually made profits on shipping prices.

From the perspective of polyester staple fiber itself, the crisis caused by overcapacity in the industry is difficult to dissipate. Inventory pressures vary among enterprises. Some enterprises have a strong intention to raise prices in the early stage, but their production and sales are stagnant and their inventories are overstocked. In order to relieve the pressure, enterprises will inevitably cut prices and promote promotions, so price wars are inevitable. The current trading atmosphere in the polyester staple fiber market is sluggish. Once low-end transaction prices appear, other companies will be unable to hold back and prices will fall one after another. Therefore, the industry itself has difficulty controlling prices and follows the trend. At present, the quotations of manufacturers in the direct-spun polyester staple fiber market in Jiangsu and Zhejiang regions are stable. The current mainstream price of 1.4D direct-spun polyester staple fiber market is 6850-6950 yuan/ton ex-factory, and the actual transaction can be negotiated. The quotation price of the direct-spun polyester staple fiber market in Fujian is stable. The current mainstream price of 1.4D direct-spun polyester staple fiber market is 6800-6900 yuan/ton short delivery. There are discounts for large quantities. The quotations of enterprises in the direct-spun polyester staple fiber market in North China are stable. The mainstream price of 1.4D direct-spun polyester staple fiber market is now 6950-7050 yuan/ton, and the actual transaction can be negotiated.
From the perspective of the raw material market, crude oil prices have been volatile recently, falling more than rising. Raw materials PTA and ethylene glycol have followed up in a narrow range, which has provided certain positive support to the polyester staple fiber market, but it is still difficult to push polyester staple prices higher. At present, the maintenance plan of Yisheng Hua’s PTA unit has been finalized, the PTA operating rate is expected to be reduced, and the supply and demand side is still strong. Therefore, even if the crude oil price is weak, the PTA market may still continue to resist falling sentiment, and the possibility of strong shocks is greater. As another raw material, ethylene glycol, is approaching its delivery date, market sentiment will also show a stronger trend. However, the dual raw materials only fluctuate strongly, which means that the increase is limited, so a small increase is difficult to push the price of polyester shorts higher. The cost pressure of polyester shorts has increased, but it is unable to follow the trend of raw materials.
From the perspective of the downstream market, the overall yarn market situation after the National Day is still difficult to be optimistic. The market sentiment remains weak, and merchants are mainly waiting and watching with a cautious attitude. The shipping mentality of yarn mills continues to rise, and the pressure on the pure polyester yarn market is also considerable. The sluggish market conditions make yarn manufacturers helpless and uneasy. Recently, the overall market conditions of the pure polyester yarn market are not ideal, with limited support, and continue to decline, showing a flat state. At present, the inventories of yarn mills continue to increase, and merchants are dominated by the mentality of shipping. In terms of quotations, they are also stable to weak. At present, the mainstream price of 32S pure polyester yarn in Jiangsu and Zhejiang is around 11,200 yuan/ton, and the general mainstream price of 45S pure polyester yarn is around 12,200 yuan/ton.
On the whole, there is insufficient upstream and downstream support, and the polyester staple fiber market will continue to consolidate and wait and see. Due to the lack of substantial positive support, polyester staple fiber is difficult to exert force. This peak season will eventually fail, and it will take time to counterattack. <br /