The Cost End Is Relatively Strong, And Polyester Staple Fiber Is On The Market.

With the good digestion in the early stage, dacron staple fiber first fell and stabilized later this week, and the initial increase was 300-400 yuan / ton. At this stage, when the demand for yarn market is difficult to improve, the price trend is not ideal. Some enterprises have released callbacks or increased negotiation space, while the cost side is temporarily supported by the rebound of PTA, so short term polyester staple fiber or shock finishing.

PTA rebound is strong, MEG market is weak.

With the implementation of the polyester plant reduction plan, the demand for raw material PTA dropped slightly, and the operation started to decline. 80.12% 。 However, the maintenance of Fuhai PTA device makes the spot circulation tighter, and the supply structure performs well.

In terms of ethylene glycol, there was an outbreak of short positions in group 9. The chemical market was adjusted. Some of the arbitrage funds were re involved. Ethylene glycol was heavily depressed. In addition, the production and marketing situation of the downstream polyester plants turned pale, and demand began to decrease gradually. The downward trend of ethylene glycol was facing a bigger test, so the short-term ethylene glycol would still be in a weak trend.

Industry profits are relatively low, and the operating rate is steadily upward.

As of July 10th, the starting rate of PET staple fiber is 83.70% Compared with last week (July 3rd) 82.62% Improved. In the two quarter, the polyester staple fiber industry was seriously damaged, the terminal orders continued to be unsatisfactory, the weak demand and high cost situation squeezed the staple fiber industry profits together, and the profitability of polyester staple fiber enterprises in the whole two quarter was relatively low.

Although the polyester staple fiber rose in a straight line in June, the industry lost its profit once it was not as good as raw material.

Demand continues to pressurized, and yarn falls.

In recent days, some PTA factories have stopped feeding and opening maintenance, and polyester production has been cut down. The price of polyester staple fibers has stabilized slightly, and the narrow fluctuation of raw materials has little effect on the pure polyester yarn market. However, the trading volume is light recently, and the negotiating range is larger under the pressure of shipment, and the center of price is lowered. In July 10th, the price of T32S in a factory in Shandong was 13200 yuan / ton, down 200 yuan / ton compared with 9 days, and the trading price of ring T/C 32S (65/35) was 16600 yuan / ton, down 400 yuan / ton compared with 9 days.

To sum up: in the near future, polyester staple enterprises are generally in the absence of inventory or oversold phenomenon, coupled with relatively strong cost support. In July, the industry average price or high volatility is the main factor, but in the short term, the market of polyester staple fiber or difficult to rise trend, cost leadership still occupies a leading position. (source: lung Chung, Kam bridge)