Spot price: spot price of domestic polyester staple fiber continued to fall this week (12.5-12.9). According to the price monitoring of the business community, the average price of domestic polyester staple fiber was about 7202 yuan/ton on December 9, down 1.64% from Monday and up 2.79% from the same period last year.

Futures market: the main force of short fiber futures this week was first restrained and then increased. On Friday, the main contract of short fiber PF futures closed at 6684, up 0.27% from the closing price last week. The settlement price is 6604 yuan. This week, the main domestic staple fiber upstream raw material PTA futures fell 3.31% to close at 5028, and the main ethylene glycol futures rose 2.35% to close at 4049.

The market’s concern about the weak crude oil demand caused by the global economic recession and the continued tightening measures taken by the Federal Reserve to curb inflation put pressure on oil prices. The main force of US oil futures fell by 10.8% for the whole week and closed near US $71.6 per barrel (as of 16:30 on the 9th Beijing time). However, influenced by the news that the Keystone oil pipeline was forced to close due to the leakage accident and that the United States may buy crude oil to supplement its strategic crude oil reserves, the crude oil price rebounded over the weekend. The sharp drop in crude oil price weakened the support for PTA cost, and PTA’s new production capacity was put into operation later than the market expectation, but some units were restarted. The downstream polyester industry has high inventory, new orders continue to decline under the background of the off-season of the terminal market, demand continues to be weak, and PTA prices continue to decline. This week, domestic ethylene glycol plants have been restarted and new plants are planned to be put into production. Supply has picked up slightly. A 750000 ton plant in the United States is planned to be shut down. Downstream polyester continued to reduce production and the starting load reached a new low, and textile terminal demand continued to be depressed. The price of ethylene glycol rebounded slightly, boosted by the large decline in the early period and the news of overseas device parking. This week, some large staple fiber plants continued to reduce production, and Luoyang Petrochemical Plant was restarted. The terminal demand is sluggish. The orders of the downstream yarn mills and weaving mills of staple fiber are poor, and the work starts to decline. The demand for polyester staple fiber is weak, and the production and sales of staple fiber continue to decline. The price continues to decline. But in the next half week, with the implementation of the new policy of national epidemic control, local terminal demand has slightly warmed up, and the production and sales of staple fiber have improved. This week, the price of pure polyester yarn and polyester cotton yarn continued to move down due to the weakening of cost end support and the continuous downturn of terminal demand. The focus of prices continued to move down, and the negotiation of goods delivery was maintained. Some preferential policies were expanded. The opening rate of northern regions was boosted by the policy of opening up epidemic prevention and control.

In the future, the support for the cost side of staple fiber raw materials is weak, and downstream demand continues to be sluggish. At the end of the year, the phenomenon of textile enterprises giving annual leave in advance gradually increases, and staple fiber may continue to accumulate. However, with the gradual relaxation of national epidemic control, some provinces and cities such as Jiangsu and Zhejiang have rushed to the sea for orders, and terminal demand may recover. At present, the absolute price of staple fiber is also at a low level within the year, and the short-term price of staple fiber may show a strong trend of shock. Pay attention to the price trend of raw materials, plant dynamics and the recovery of downstream orders.