According to the Commodity Market Analysis System of Shengyi Society, under the dominance of cost decline, the mainstream market price of domestic polyester staple fiber slightly fell this week (July 15-19). As of July 19, the average price of 1.4D * 38mm in mainstream staple fiber factories was 7918 yuan/ton, a decrease of 0.31% from the beginning of the week.

The price of raw material PTA has weakened, with the average PTA market price in East China at 5931 yuan/ton, a weekly decline of 0.25%. The current operating rate of the PTA industry in China is around 84%, and some units will still restart in the later stage. However, the PTA maintenance plan is relatively few, and the liquidity may be sufficient after the supply returns, resulting in significant pressure on the accumulated inventory.

Mainstream polyester staple fiber factories maintain high price sales, increasing inventory pressure, and traders attract customers with relatively low prices, resulting in a strong shipping mentality. Although there are no maintenance plans in the near future, there is a possibility of unplanned production cuts due to the pressure of factory inventory accumulation. It is expected that the trend of production will decline and the supply will decrease.

On the demand side, the textile terminal continues to be in a off-season state, downstream yarn factories have weak shipments, the market has scarce new orders, and inventory turnover is slow. The yarn factory is resistant to high priced raw materials, and at the same time, cash flow is tight. They are mainly observing and maintaining a small amount of essential purchases.

Business analysts believe that the downward shift in cost center has weakened the support for polyester staple fibers, coupled with weak downstream demand, and the lack of enthusiasm for raw material procurement. Currently, only short fiber manufacturers are selling at high prices, which is expected to provide insufficient price support.