Shouchuang Futures: Decline in construction activity, short fiber futures fluctuate at high levels

On the supply side, Zhejiang Donghua restarted production of 30k tons, Shihua restarted production of 150k tons, and Sanfangxiang’s output increased by 200 tons/day. Some units are under maintenance, and the short fiber operating rate has decreased slightly compared to the previous period.
On the demand side, raw material prices fluctuate significantly, with polyester yarn prices quickly following the rise and fall, but downstream end-users cannot accept high costs, leading to scarce transactions at high prices for polyester yarn. Most are observing the market, and some yarn factories later have intentions to reduce or halt production or switch to other products. Short fiber inventory has increased compared to the previous period.
In summary, it is expected that short fiber futures prices will mainly fluctuate at high levels following polyester raw material prices in the short term, with attention to the trend of costs. (First Capital Futures)