Sinopec News: Polyester Staple Fiber Prices Fluctuate and Weaken Under Geopolitical Tensions

This week, the East China market’s polyester staple fiber (DTY) short-staple fiber spot prices saw choppy volatility and weakened, with average prices declining. In the East China market this week, the average price was 8,277 yuan/ton, down 123 yuan/ton from last week’s average price, a decrease of -1.46%. This week, in the East China market, the polyester short-staple fiber price trend remained volatile and turned weaker. Driver analysis: On the one hand, there are many differences between the two sides in the Middle East conflict regarding talks and issues related to navigation through the Strait of Hormuz; market sentiment has high instability. This leads to aggregation/production costs showing a rise–fall–rise pattern, and cost logic dominates the short-staple fiber trend. On the supply side, polyester short-staple fiber units are running steadily, with ample supply; during the week, close to the monthly settlement day, some traders sold short-staple fiber at relatively low prices. On the demand side, downstream buyers purchase as needed, with a cautious mindset, and transactions in the market were average. Overall, this week the polyester short-staple fiber market is still influenced by changes in the Middle East situation; costs show a rise–fall–rise pattern, driving short-staple fiber prices to adjust accordingly, so polyester short-staple fiber prices remain choppy and weaken. Looking ahead, the Middle East conflict situation supports raw material prices running at high levels, with cost remaining relatively strong dominating the price trend, while the impact of supply exceeding demand is minimal. It is expected that polyester short-staple fiber prices may rise. (ZhuoChuang Information)