Price increase – synonymous with “Golden Nine”! Polyester staple fiber, whose market has not been outstanding this year, finally ushered in a wave of favorable market conditions in late September, with prices rising straight up, breaking through the 9,000 yuan/ton mark, and taking the “throne” of the year in one fell swoop.
In fact, judging from the market situation of polyester staple fiber this year, it is basically running at a high level around the Spring Festival. However, in March, polyester staple fiber gradually entered a period of decline. In the second quarter, polyester staple fiber manufacturers faced the dilemma of both volume and price falling. , and it was not until the third quarter that it gradually recovered. From the current market point of view, the mainstream quotations for 1.4D direct-spun polyester staple fiber in Jiangsu and Zhejiang are concentrated at 8850-9150 yuan/ton ex-factory, and the actual transaction price is around 8850-9050 yuan/ton ex-factory. The September contract settlement price of Sanfangxiang direct-spun polyester short knots is 8,900 yuan/ton for 1.4D semi-gloss polyester short knots and 9,150 yuan/ton for 1.2D glossy knots ex-factory.
The price of seed cotton is pushed up, boosting the sentiment of polyester cotton
Cotton is definitely a “close comrade” of polyester staple fiber. The price fluctuations of cotton directly affect the price changes and demand ratio of polyester staple fiber. The “National Day” window period is one of the three most critical time windows in the cotton market in a year. In late September, Xinjiang cotton gradually began to be harvested in large quantities, and the annual harvest drama will be staged on time. The purchase price is considered a barometer of the market, and every move affects the price trend of spot and futures prices.
Due to the rapid changes in the price of seed cotton in the early stages of the acquisition, various stakeholders are secretly competing with each other. The purchase price has also risen, and a more unanimously recognized purchase price has not yet been formed. The purchase price of Xinjiang seed cotton once appeared to be one price per day, which was higher than the level of the same period last year. . This naturally directly boosts the confidence of polyester staple fiber manufacturers and creates an impetus for price increases.
Yarn demand rises, stocking up in stages before the holiday
For polyester staple fiber, favorable demand is the most critical guiding factor. The overall performance of downstream yarn manufacturers in September was good, especially in the pure polyester yarn market. The price focus increased significantly, which naturally led to an increase in the demand for raw material procurement. In addition, coupled with the phased stocking before the National Day, the transaction atmosphere of polyester staple fiber was extremely It is very popular, with some manufacturers’ production and sales reaching 400%-500%. Towards the end of the month, the production and sales of the polyester yarn market declined, and most downstream spinning mills mainly replenished goods for urgent needs.
In terms of supply, Fujian Xianglu’s two sets of polymerization units with a total of 380,000 tons, which were originally shut down for maintenance on August 29, began feeding and restarting on September 26. The unit was originally scheduled to restart on September 15, and mainly produces polyester staple fiber and polyester. Filament. Overall, the polyester staple fiber production capacity in 2017 was 6.79 million tons. Among them, the devices calculated as being within the production capacity but currently not in operation include Xiangsheng 200,000 tons, Far East 200,000 tons, and Shanghai Hengyi 120,000 tons. The remaining devices that are not in operation are not included in the production capacity.
International oil prices soar, driving cost growth
As the source product of the polyester market, international oil prices have shown a sharp rise since September, which has more or less boosted the polyester staple fiber market. Some market analysts said that as refineries in the United States gradually restarted after Hurricane Harvey, demand for crude oil is expected to increase, driving a strong rise in international oil prices. As of the close of trading on the 29th, the price of light crude oil futures for November delivery on the New York Mercantile Exchange closed at US$51.67 per barrel; the price of London Brent crude oil futures for November delivery closed at US$57.54 per barrel. Data shows that New York oil prices rose by 12% in the third quarter, and Brent oil prices have risen by about 10% in September.
Although the market is booming in mid-to-late September, there has been news of falling cotton prices in Xinjiang recently. During the National Day holiday, downstream yarn mills also suspended production and went on holiday. The demand may weaken. Can you still hold on to polyester staple fiber?
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