Recently, the domestic polyester staple fiber market prices have maintained a weak adjustment. As of July 29th, the average price of 1.4D * 38mm mainstream polyester staple fiber factories in China was 7835 yuan/ton, a decrease of 1.05% from July 22nd. The decline in costs and weak demand have dealt a blow to the price of polyester staple fibers, leading to a downward trend in prices.

In terms of cost, the crude oil market is generally concerned about weak demand, and European and American crude oil futures fell to a six week low. As of July 26th, the settlement price of the main contract of WTI crude oil futures in the United States was $77.16 per barrel, and the settlement price of the main contract of Brent crude oil futures was $80.28 per barrel.

At the same time, the prices of PTA, the main raw material for polyester staple fibers, and ethylene glycol, the secondary raw material, have both declined. The impact of PTA plant changes on its supply is limited, and the source of goods remains abundant, with an industry operating rate of around 82%. In terms of price, as of July 29th, the average spot market price in East China was 5850 yuan/ton, a decrease of 3.11% from early July.

On the demand side, the textile demand continues to be in a off-season state, and downstream yarn factories have accumulated finished product inventory. Under the conditions of high temperature and tight cash flow, the willingness to start production has decreased, and the enthusiasm for raw material procurement is not high. Recently, the export of textiles and clothing has also been sluggish, and the operating rate of the weaving industry has continued to decline. The overall market orders are still dominated by small and scattered orders.

Business analysts believe that mainstream polyester staple fiber manufacturers plan to reduce production by 10% -15% by the end of this month, with an expected decrease in supply. The factory adheres to the fixed price model unchanged, supporting the market mentality. However, due to the drag of costs and declining demand, it is expected that the price of polyester staple fibers may maintain a narrow decline.