Due to weakened raw material support, sluggish demand, and bearish fundamentals, the price center of the PTA industry chain began to shift downwards in mid May. From the perspective of each product:
International crude oil prices fluctuated and fell. As of May 26th, the settlement price of the main contract for WTI crude oil futures in the United States was $61.53 per barrel, and the settlement price of the main contract for Brent crude oil futures was $64.78 per barrel. The malfunctioning devices in the early stage of the PX market have gradually recovered, coupled with the expectation of weakening demand, resulting in a weak performance of the PX market’s high-level decline.
There were many restarts of maintenance equipment in the early stage of PTA market, and there was a slight increase in domestic supply. The downstream polyester end is expected to be pessimistic, with insufficient cost support and a lack of favorable support. As of May 26th, the average price of PTA market in East China was 4917 yuan/ton, a decrease of 1.8% compared to May 16th.
The market price of polyester staple fiber followed suit and fell. As of May 26th, the average market price of domestic polyester staple fiber (1.4D * 38mm) was 6572 yuan/ton, a decrease of 2.3% from May 16th. Mainstream polyester staple fiber manufacturers are under pressure in terms of physical inventory, and their own production has also increased. Downstream yarn factories are cautious in purchasing and maintaining demand.
The polyester filament market remains temporarily stable, with mainstream polyester filament factories in Jiangsu and Zhejiang offering POY (150D/48F) prices ranging from 6950-7200 yuan/ton, polyester DTY (150D/48F low elasticity) prices ranging from 8000-8400 yuan/ton, and polyester FDY (150D/96F) prices ranging from 7300-7400 yuan/ton. With the weakening of cost support and the failure to significantly increase orders in the textile and clothing industry, market pressure still exists.
The risk of insufficient orders and unstable cost support for terminal textile enterprises has increased, and their enthusiasm for raw material procurement is not high. They maintain on-demand procurement and adopt a wait-and-see attitude. May is the traditional seasonal off-season, with a lukewarm market performance and limited demand growth for weaving enterprises. In the short term, it has entered the stage of digesting inventory.
Business analysts believe that although the tariff risk has eased, the performance of terminal orders is average. Especially in the foreign trade market, there are still many uncertain factors, maintaining a wait-and-see attitude. Moreover, the current trend of international oil prices remains weak, with insufficient cost support, and it is expected that the PTA industry chain will maintain a downward trend.
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