With the weakening of raw material support and weak demand, the price of polyester staple fiber began to decline in mid May. According to the Commodity Market Analysis System of Shengyi Society, as of May 30th, the average market price of domestic polyester staple fiber (1.4D * 38mm) was 6511 yuan/ton, a decrease of 3.21% from May 16th.

The cost side oil price support is limited, and crude oil prices continue to fluctuate narrowly. The market is waiting for the results of the OPEC+meeting. As of May 29th, the settlement price of the main WTI crude oil futures contract in the United States was $60.94 per barrel, and the settlement price of the August Brent crude oil futures contract was $63.35 per barrel.
In late May, PTA plants were gradually restarted, and Sichuan Energy Investment has already restarted. Taihua has some expectations of restarting, and overall production has increased. However, the maintenance plan for PTA in the later stage has not been clearly defined, coupled with strong production reduction sentiment from downstream polyester factories, the marginal weakening of PTA supply and demand has put significant pressure on prices.
At present, both domestic and foreign trade orders at the terminal are showing signs of weakness. As the Dragon Boat Festival holiday approaches, downstream expectations for the post holiday market are pessimistic, and the enthusiasm for receiving goods is not high. Yarn factories maintain their demand for essential purchases, and their willingness to stock up is not high. In terms of orders, most summer orders are nearing completion, and a small number of autumn and winter fabric orders have been placed. The export market remains uncertain due to trade frictions and other factors, resulting in overall weak demand performance.
Business analysts believe that in the short term, the fundamentals of polyester staple fibers are weak, and factories have a strong willingness to ship. June is the traditional off-season for the textile industry, with weak orders from downstream yarn mills and weaving factories. Weak demand is the main reason for suppressing the rise in short fiber prices. At the same time, it is still necessary to pay attention to the support brought by cost changes such as crude oil and PTA. Overall, it is expected that the prices of polyester staple fibers will experience weak fluctuations and adjustments in June.