Polyester Staple Fiber Prices Rise Amid Cost Pressures

Polyester staple fiber prices in China have experienced an upward trend, driven by favorable cost factors. As of July 24, the average market price for polyester staple fiber (1.4D*38mm) was 7662 CNY/ton, marking a 1.96% increase from the beginning of the week.

The recent attack on a Red Sea oil tanker and the escalating U.S.-Iran tensions have pushed Brent crude oil prices above the $100 mark, providing strong support from the cost side. Additionally, concentrated maintenance at upstream PX plants has reduced inventories, resulting in a tight supply situation. This has been compounded by centralized maintenance in the PTA industry, which has led to significant inventory reductions, driving spot inventories to multi-year lows.

Despite these cost pressures, the downstream weaving industry remains in its traditional off-season, with limited purchasing based on immediate needs. This has somewhat constrained the extent of price increases, as downstream polyester factories are only buying as needed. Analysts suggest that while the cost side remains supported by high crude oil prices and low PTA supply, the downstream sector's struggle to absorb these increases could pose challenges moving forward.