Rising Crude Keeps Polyester Prices Buoyant

Market Intelligence

Rising Crude Keeps Polyester Prices Buoyant

PTA

PTA prices witnessed an upward trend backed by stronger crude oil prices during September second half. Petrochemical based commodity prices have changed owing to fluctuation in crude oil price and that has its effect felt across the PTA markets. However, demand for PTA is not strong as downstream polyester sector is performing at average level and buying is need based. Therefore, inventory level of PTA is building up and could go up even further. So, there are chances that PTA prices would keep fluctuating within a narrow range. However, negative corrections are expected to be resisted. Current spot market offer prices for PTA are around US$ 660-680 per metric ton CFR CMP while traded prices are learnt to be around US$ 650 per metric ton or marginally higher. Outlook for PTA prices indicates towards a fluctuating price trend in the coming fortnight.

MEG

MEG prices witnessed a volatile trend during second half of September which was inherited from previous fortnight. However, prices went down significantly towards the end of the month after touching the peak of US$ 940 per MT level. The sudden upward movement was fuelled by China due to concerns of transport restrictions. MEG prices came down crashing as the concern was over. The demand for MEG has been average and downstream players might replenish stock as prices of the commodity rationalises. Current spot offer prices of MEG are above US$ 900 - 905 per MT CFR China and traded prices are around US$ 895 per metric ton. MEG prices are expected to exhibit a fluctuating trend in the coming weeks and might soften.

PET Chips

PET chips prices witnessed upward trend during September second half backed by PTA prices. Also, sudden spike in MEG prices have helped the PET chips producers to change offer prices. The demand for PET chips is passable and manufacturers are operating at optimum capacity. Current Water Bottle Grade PET chips offer prices are around US$ 1020-1030 per MT FOB China while deals were done around US$ 1005-1015 per MT FOB China. Fiber grade chips quoted prices are around US$ 960-970 per MT FOB Korea. Polyester chips prices are expected to remain stable in the coming weeks.

PSF

Quoted prices of PSF have witnessed volatility during September second half due to changes in the raw material prices. Raw material prices backed by stronger crude oil price have changed the offer prices of the fiber. Also, better downstream demand witnessed during the month helped the fiber suppliers to revise prices upward. PTA prices witnessed northward movement backed by stronger crude oil movements while MEG prices moved up substantially and declined in this fortnight. Fiber suppliers have, therefore, offered cost support and to ensure that PSF prices get an upward thrust. Also, inventory levels have come down and stocks are normal. In Chinese local markets, prices of PSF have increased substantially backed by better demand while trading activities have increased substantially. In Indian local markets, PSF prices strengthened marginally while demand remained weak. Current offered price for 1.4 denier raw white semi dull PSF is around US$ 1.1 – 1.12 FOB China/Taiwan. CNF India prices are around US$ 1.15 – 1.18 per kg. Prices of PSF are expected to witness minor corrections in the coming weeks.

PFY

Polyester Filament Yarn prices witnessed upward movement during September second half as raw material prices have strengthened. The changes in raw material prices have helped the filament yarn prices as cost support improved sizably. On the other hand, better trading volume has helped inventory level to come down. Therefore, price escalation was significant across the board in POY, DTY and FDY. Prices of polyester filament in Chinese local markets have increased too during the last fortnight and stock levels have been very low. In Indian market, demand for polyester yarn continues to be weak which has been attributed by downstream plant closures. Though downstream knitting and weaving sector has resumed operation after the protest against Goods and Services Tax regime, still many plants are idled. So, demand for polyester yarns, though improved marginally, it’s yet to become normal. Current quoted price for 115D/36F POY is US$ 1.11-1.12/kg FOB China/Taiwan, 150D/48F POY price is US$ 1.03 – 1.04/kg FOB, whereas 75D/36F DTY price increased to US$ 1.50 - 1.52/kg and 75D/72F FDY price increased sizably to US$ 1.32 – 1.33/kg FOB China/Taiwan. PFY market forecast indicates that yarn prices would witness a fluctuating trend if in the coming weeks.

ACN

Acrylonitrile prices witnessed substantial upward movement during second fortnight of September. Increasing propylene prices have supported the ACN price and a stable demand from downstream provided the required thrust to ACN prices. Current spot prices for ACN to Far East Asian market is around US$ 1730 – 1735 per MT CFR Far East Asia and around US$ 1690 per MT CFR South East Asia and around US$ 1670 per MT CFR South Asia. ACN prices are expected to remain strong in the coming weeks.

ASF

Acrylic fiber prices moved up marginally during September backed by high cost of raw material. The demand for ASF has been good amid supply concerns. Inventory levels have come down and reduced plant operating rates have helped it. Current offered price for regular 3 den fiber are around US$ 2.0 – 2.0 5 per kg FOB Taiwan. Offers for 3 den bright ASF tow and anti-pilling 1.5 den tow were at US$ 2.02 - 2.06/kg and US$ 2.1-2.15/kg respectively. ASF prices are expected to witness a stable trend in the coming weeks.

CPL

Caprolactam prices moved up during second half of September as the crude oil prices have strengthened. Demand for CPL seems to have gained marginally as downstream polymerisation plant operating rates have improved. However, buyers are resisting further price hike. Current spot offer price for CPL originating from Eastern Europe are around US$ 1750-1780 per MT CFR China. CPL price may witness correction in the coming weeks.

NFY

Nylon filament yarn prices witnessed an upward trend during second half of September as the raw material prices moved up again. Yarn spinning plant operating rates have improved as margin has been handsome at this moment. Also, demand for Nylon yarn has been passable. Current offer prices of 70D/24F Nylon DTY is in the range of US$ 3.43 – 3.44 per kg FOB China whereas Nylon FDY of 70D/24F quoted US$ 3.32 - 3.34 per kg FOB Far East Asia. Nylon filament yarn prices are expected to witness corrections in the coming weeks.

Pulp

RGWP prices witnessed an upward trend during second half of September. Also, VSF plant operating rates have improved resulting in better traded volume. Offered price for high quality RGWP was US$ 980 per MT and above while regular grade imported hard wood RGWP prices were around US$ 890 per MT CFR China. Pulp prices are expected to witness a stable trend in the coming fortnight.

VSF

Viscose fiber price witnessed a stable trend in the export market during September second half. However, the demand for the fiber has improved and traded volumes have moved up. Fiber prices in Chinese local markets have increased significantly and stock levels with producers have been stable at around an weeks production. Current offered price for 1.4 denier fiber is around US$ 1.82 – 1.86 per kg FOB originating from China and offers originating from Indonesia are around US$ 1.85 -1.90 per kg. VSF prices are expected to witness a stable trend in the coming fortnight.