Polyester Staple Fiber Prices Rise in July Due to Cost Factors

In July, polyester staple fiber prices in China experienced an upward fluctuation, primarily driven by favorable cost factors. The average market price of polyester staple fiber (1.4D*38mm) reached 7662 CNY/ton by July 24, marking a 1.96% increase from the start of the week.

The price surge was largely supported by the rising cost of crude oil, which was influenced by geopolitical tensions such as the attack on a Red Sea oil tanker and the U.S.-Iran standoff, pushing Brent crude oil above the $100 mark. This increase in oil prices provided strong cost-side support for polyester staple fiber.

Additionally, concentrated maintenance activities at upstream PX plants and PTA industry have led to reduced inventories, creating a tight supply situation. Polyester staple fiber producers have also been limiting output, maintaining industry operating rates at around 75%, which has contributed to a steady decline in social inventories.

Despite these cost pressures, the downstream weaving industry remains in its traditional off-season, with limited purchasing activity based on immediate needs. This has somewhat restrained the extent of price increases. Analysts suggest that while cost factors will continue to support prices in the short term, the potential return of PTA supply could weaken cost pressures in the future.