Polyester Staple Fiber: Domestic and Foreign Difficulties, Worsening Afternoon

This week, the domestic market of polyester staple fiber prices fell. Due to the unstable external economic situation, although the rumored European debt crisis has bottomed out, the follow-up challenges remain daunting. As Sinopec’s contract price for March was reduced to 12,000 yuan/ton, domestic mainstream companies began to plan to reduce the price of polyester staples by restricting production while reducing prices.

Polyester raw materials PTA also joined the ranks of production restrictions, the specific restart time is mostly based on market conditions. Now that external orders are scarce, internal textile companies are in a stalemate and buying is scarce. Due to the gradual expansion of the losses of staple fiber and yarn companies, coupled with the increase in labor costs, poor shipping, increased cash flow pressure, manufacturers preferential shipping, prices continue to decline.

At present, the mainstream price of polyester staple fiber in the polyester market in Jiangsu and Zhejiang is 11,450 yuan/ton, down by 150 yuan/ton from the previous week, a decrease of 1.29%. The production and sales rate of mainstream polyester and polyester enterprises in the country is between 3-5 percent, and the operating rate of equipment is at 70%. Downstream buying is more wait-and-see, trading volume is scarce, mostly based on small and medium singles.

Longzhong Information thinks: In recent days, the polyester and the short-term market has held a weak adjustment trend, and the preferential margin has slowed slightly. However, the current shortage of domestic and foreign markets in the polyester and short-term market is worrying and the market outlook is worrying.