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October 05, 2025

Downstream Market Purchasing Slightly Reduced

In recent days, the domestic polyester staple fiber market has seen slight fluctuations, with prices remaining relatively stable and transaction activities maintaining a fair level. The upstream polyester raw material market plays a crucial role in influencing this sector. Following a sharp decline in the international crude oil market last week, market sentiment for polyester staple fiber was dampened, leading to increased resistance in transactions. However, due to low inventory levels among polyester staple fiber producers, there is no significant pressure for price reductions. One might wonder why the downstream market is experiencing a slowdown, especially when it's not as prominent as the polyester filament segment. Upon closer analysis, the reason lies in the strong performance of the yarn market this year. As a result, yarn companies have been purchasing raw materials in smaller quantities than usual, ensuring sufficient stockpiles over time and eliminating any risk of shortages. This stability in supply has contributed to a more balanced market environment. Currently, with New York crude oil prices climbing back above $80 per barrel and stabilizing, the market has found some support. However, poor U.S. economic data has not significantly boosted market confidence. Crude oil prices have since retreated slightly, settling around $75 per barrel. Meanwhile, PX prices have also started to pull back, with Asian spot prices currently hovering around $900 per ton. The PTA spot market has shown signs of weakening, with fewer inquiries and a more cautious attitude from traders. Market quotations are now between 7,350–7,400 yuan/ton, while overseas prices are being negotiated around $900/ton. Similarly, the MEG market has slowed down, with prices showing little movement. The mainstream negotiation price inside China stands at 6,400 yuan/ton, while overseas prices are approximately 780 dollars/ton. Sinopec Group’s August contract prices for polyester chips remain steady, with half-light chips priced at 9,300 yuan/ton, light chips and industrial silk chips also at 9,300 yuan/ton, and all-extinction chips at 10,100 yuan/ton. Despite this, the polyester chip market remains subdued, with a wait-and-see attitude prevailing. The current quoted price in the market has dropped slightly, standing at 9,100–9,200 yuan/ton. For polyester staple fiber, Sinopec Group’s August contract pricing includes 1.4D half-light at 10,000 yuan/ton, 1.2D half-light at 10,050 yuan/ton, and 1.2D light at 10,600–10,650 yuan/ton (sent). Real-time market quotes reflect similar levels: 1.4D half-light at 10,000 yuan/ton, 1.2D half-light at 10,050 yuan/ton, and 1.2D light at 10,600–10,650 yuan/ton (sent). Currently, the domestic market for 1.4D polyester staple fiber is trading within a range of 9,600–9,800 yuan/ton (cash or acceptance), with this offer remaining largely unchanged from the previous week. In East China, the polyester staple fiber market continues to be dominated by consolidation, with prices mostly stable and market sentiment relatively light. Transaction focus remains consistent, and the turnover level has remained similar to the previous week. Over the past week, the operating rate of polyester staple fiber producers has declined slightly, though inventory levels remain low. Although the upstream polyester raw material market has rebounded, the price of polyester staple fiber has not risen significantly, but transaction activity has improved. However, the polyester raw material market is soon entering an adjustment phase, and the polyester staple fiber market is also undergoing a period of weak consolidation.

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