Shoufutures: Cost Declines, Short Fiber Futures Pullback from High Levels

On the supply side, short fiber production significantly increased last week. Fujian Jingwei’s 200,000-ton facility, Zhejiang Huaxing’s 150,000-ton plant, Chuzhou Xingbang’s 200,000-ton unit, Zhejiang Shidai’s 60,000-ton plant, Zhejiang Zhuocheng’s 115,000-ton facility, and Ningbo Dafa’s 400,000-ton direct-spun polyester short fiber unit resumed production. Sichuan Jixing’s 200,000-ton, Yihua’s 225,000-ton, and Shihua’s 150,000-ton facilities are temporarily shut for maintenance.

On the demand side, pure polyester and polyester-cotton yarns have gradually restarted after the holiday, with overall demand slowly recovering. Downstream buyers are cautious about high-priced sources.

In summary, polyester raw material prices have fallen sharply, and short fiber production has recovered relatively quickly. In the short term, short fiber futures are expected to follow cost fluctuations, with attention to the trend of costs. (First Capital Futures)