Recently, U.S. crude oil inventories have continued to decline, downstream demand has increased, and international crude oil futures prices have hit a new high in the past two years. Brent crude oil August futures closed up 75.56 Dollar. The strong rise in crude oil has driven most chemical products to prosper. The polyester raw material PTA has seen the largest increase, and the cost-end has been boosted, giving the polyester staple fiber market a hint of warmth in the off-season. On June 21, the market price of polyester staple fiber began to rise, rising from 6,750 yuan/ton to 7,050 yuan/ton, with an increase of 4.44%.
From the perspective of raw materials, oil prices have risen, and PTA and ethylene glycol have received favorable support, prompting market prices to rise. , the cost support is strong. At present, the new production capacity of raw material PTA has been put into trial operation, but since it has not yet produced qualified products, the increase in market supply is not obvious. After the preferential treatment of downstream polyester has been enlarged, production and sales have increased, and mainstream PTA suppliers have announced that they will continue to reduce contract supply next month. Volume has formed support for the spot market, and the basis has firmed slightly. Inventories of ethylene glycol at East China ports have accumulated for four consecutive weeks, but the extent is limited. New domestic production capacity has been successfully put into operation, the restart time of maintenance equipment has been delayed, and the supply of coal-based goods is tight. In the long term, supply pressure will be more prominent.
In addition to the strong support from the cost side, the fundamentals of supply and demand also perfectly assist the market upward. This week, Henan Luoyang Petrochemical’s 100,000 tons/year short fiber unit will be shut down for maintenance, and the maintenance is planned for about a week. There are still two sets of short fiber equipment in Jiangyin area with maintenance plans, involving a production capacity of about 400,000 tons/year. The market supply is still expected to shrink, and the short fiber processing fee space is low. At this time when crude oil is rising, polyester staple fiber Factories are taking advantage of this trend to rise. Although factory production and sales have improved, they are not as popular as in the past. Shipments are still mainly based on traders’ price transactions.
At present, although the cost side has formed a strong support, the downstream market is in the traditional off-season market, and the demand side is difficult to emerge in the short term. The situation has improved significantly, and downstream yarn companies are cautious about supply after the increase.