Crude Oil and FIber Market Trend Week 14

As the oil continue to rebounded, Polyester chip,PSF, filament yarn price continued to rose on Saturday and Sunday in domestic market. While the export demand is still weak.

Market this week – W14

Summary: Oil went down, PTA narrowed, MEG fluctuated to fell, Polyester chip, PSF followed to go down, Polyester filament accelerated to fell, VSF weak stable.

1,Oil prices rose sharply this week. As many cities around the world have announced quarantine regulation, consumer demand for gasoline continues to decline, and oil prices continued to decline on Monday. In hopes of a new agreement that the Russian Kremlin and Washington may be able to reach to replace the consensus reached at the meeting of OPEC and its allies, oil prices rose on Tuesday. The new COVID-19 epidemic continues to impact the demand for crude oil. The joint oil production reduction plan of major oil-producing countries has not been reached as scheduled. The oil price war in Russia continues. The international crude oil market is under double pressure from supply and demand. US President Trump said he had talks with Russian President Vladimir Putin and the Saudi Crown Prince, and the two countries are expected to reduce production by about 10 million barrels. This remark pushed US crude oil prices up by 24% on Thursday, the highest single-day increase in history.

2,The PTA rebounded after a low volatility, the spot price rebounded and the trading volume rose sharply. At the beginning of the week, PTA equipment was intensively restarted, and PTA supply was abundant. Under the pressure of polyester factory inventory, some factories reduced production and the buying atmosphere was weak. In the second half of the week, crude oil rebounded from a low level, the sales volume increased, and traders bought aggressively.

3,MEG prices rose sharply this week, and buying followed up positively. At the beginning of the week, MEG prices were sorted in a narrow range, with base trades mainly, and individual polyester factories participated. In the middle of the week, as the crude oil market boosted and market sentiment boosted, MEG prices rose sharply and volume increased.

4,The polyester chip market gradually stopped falling and stabilized. Continued downwards on the cost side. The market continued to decline in the first half of the week. Chip prices continued to record lows, but entered the second half of the week. Stimulated by the news, crude oil profits rose and polyester raw materials began to rebound. The market sentiment has been greatly improved. After the transaction volume has increased, prices have gradually increased, and the atmosphere of market bottoming is obvious. The trading volume is concentrated in the second half of the week.

5,Jiangsu and Zhejiang polyester filament yarn restrain first and then rise. At the beginning of the week, as raw materials continued to plunge, the polyester yarn also followed a decline. Due to the high inventory of some silk mills, the preferential margin is large in order to promote transactions. Overall, the transaction price of the entire market is confusing. In the middle of the week, as raw materials rose, the terminal’s willingness to purchase at low-priced was strong, and production and sales ushered in heavy volume. The prices in South China were lowered at the beginning of the week and followed the rise in the middle of the week. In the export market, quotations continued to decline due to the severe foreign epidemic situation, but the demand side has not improved.

6,Polyester staple fiber stopped falling and quotations were raised. In the first half of the week, the PSF maintained a downward trend, and most of the factories mainly engaged in negotiating operations, and turnover fell. Afterwards, driven by the rebound of crude oil and polyester raw materials, the PSF transaction volume was increased significantly on Thursday and Friday. However, most of the purchases are mainly from the replenishment of yarn mills, and traders have less operations. The overall inventory of the factory is at a normal level, and there is still a small amount of previous orders due to lower parts.

7,Viscose staple fiber weakened, and sales volume did not improve much. The quotation is slightly lowered, the actual transaction can be negotiated specifically, but a large number of transactions have not been heard. High-white fibers tended to be calm this week, and other differentiated fibers did not perform well. Export orders have partially increased.

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