July: PET Staple Fiber Trending Downward, Viscose Staple Fiber Narrowed Decline; Outlook For August
Aug 11, 2025
PET Staple Fiber: Price Downward, Driven by Weak Supply and Demand
In July, the price of PET staple fiber came under pressure and trended downward, mainly due to insufficient cost support and weak demand. The upstream PTA market showed a V-shaped trend, with the average price in East China dropping to 4,889 yuan/ton, a 3.79% decrease from the start of the month. In the first half of the month, affected by fluctuating crude oil prices, industrial capacity expansion, and expectations of polyester production cuts, PTA saw both weak supply and demand. Although it rebounded slightly at the end of the month due to improved macro sentiment, the overall weak trend remained unchanged.
On the demand side, high temperatures and the traditional off-season led to insufficient orders and expanding losses for downstream yarn factories, with purchases only meeting rigid demand. It was not until the end of the month, when macro sentiment improved, that demand saw a slight increase.
Analysts predict that in August, the price of PET staple fiber will still fluctuate following changes in costs and demand. While improved macro sentiment may prompt end-users to restock at low prices, easing factory inventory pressure, the overall supply and demand outlook remains weak, with limited upward momentum.
Viscose Staple Fiber: Decline Narrowed, Early Signs of Peak Season Expectations
In July, the decline in viscose staple fiber prices narrowed, with modest cost support. The price of raw material dissolving pulp remained weakly stagnant, with domestic prices at 6,700 yuan/ton and overseas broadleaf pulp at 800 USD/ton; prices of auxiliary materials such as liquid caustic soda and sulfuric acid saw little fluctuation.
On the supply side, the industry's daily operating rate was around 75%, and manufacturers' inventories declined from previous levels, but market supply remained ample, providing limited support. For the downstream rayon yarn market, operating rates rose slightly with little price fluctuation; only export orders for individual vortex-spun models performed slightly better, while overall demand showed no significant improvement.
Looking ahead, raw material prices may decline, leading to insufficient cost support. On the supply-demand front, supply support is weak and demand momentum is modest. However, as August transitions toward the "Golden September and Silver October" peak season, viscose staple fiber is expected to rebound, though the increase will be limited. It is predicted that the market will remain generally stable with minor fluctuations in the short term, with prices ranging between 12,800-13,000 yuan/ton (acceptance).
