Polyester Prices Stay Stable

Market Intelligence

Polyester Prices Stay Stable

PTA

Purified terephthalic acid markets saw limited trading activity after a week-long National day holiday in China as prices generally remained unchanged during the past two weeks. On the first trading day after the holidays, PTA market fundamentals rolled over unchanged and Futures dominant contract in China closed lower from the previous trading day’s settlement price. PTA prices remained unchanged in Asian markets with CFR China at US$ 650-652 per metric ton and CFR Southeast Asia at US$ 665-700 per metric ton. Outlook for PTA market suggest that players will keep tend to keep away systematic risks and adopt wait-and-watch stance on the sideline.

MEG

MEG markets fluctuated in weakness and spot was mainly under correction in the past two weeks. Offers generally rolled over with bids and discussions inching down amid thin enquiring sentiment. A 750 kilo ton per annum MEG unit in India saw run rate picking up to 90% and cargoes produced are slated to be shipped in November to China. Asian MEG spot prices remained flat with CFR China at US$ 878-883 per metric ton and CFR South East Asia at US$ 900-905 per metric ton. In China, offers for nearby-month goods were at US$ 870-875 per metric ton, with bids around US$ 860-865 per metric ton. In India, MEG prices inched up marginally to US$885 per metric ton. In Europe, MEG October contract settlement was agreed at Euro 950 per metric ton, a rollover from September settlement.

PET Chips

Polyester chip prices which witnessed a hike earlier fortnight, saw them retreating at the lower end over the fortnight, implying prices are unable to move higher and low-end goods were largely traded during the period. Water bottle grade PET chips offer prices are around US$ 1015-1030 per MT FOB China while deals were done around US$ 1000-1010 per MT FOB China. Overall, on the back of softening feedstock against decent demand, polyester chip market will remain in weakness in coming week.

PSF

PSF markets remained stable in terms of price while there was demand variations observed in Asian countries. In China, PSF prices rose on mostly due improved buying after the holidays. Offers for 1.4D direct-melt-spun PSF in Jiangsu and Zhejiang were seen hiked in the first fortnight of October, although PTA and MEG markets remained soft. In Pakistan, PSF prices remained stable after the hike in September end. But import offers from China seem to be slightly receding at the same time. In India, PSF prices rolled over on range-bound feedstock and soft demand. Yarn spinners return to the market after the GST on chemical fiber based spun yarns were reduced from 18% to 12% this week. Thus, upside potentials are expected for PSF makers. In China, 1.4D direct-melt-spun PSF offers in Jiangsu and Zhejiang were at US$ 1.33-1.38 per kg, up US cents 2 while the same in in Pakistan rolled over at US$ 1.27-1.28 per kg, with import offers from China at US$ 1.21 per kg CNF Karachi. In India, PSF prices rolled over at US$ 1.32 per kg for 1.4D. Offers for 32s polyester yarn in China rolled over at US$ 2.02 per kg while 45s were stable at US$ 2.17 per kg. In India, polyester yarn 30 knit yarn prices were steady at US$ 2.28 a kg in Ludhiana market while in Pakistan, polyester spun yarn prices were flat in Karachi with 20s at US$ 2.35per kg and 30s at US$2.62 per kg, both up marginally.

PFY

Polyester filament yarn market sentiments were stable. In China, first half of October was quiet due to week-long National day holiday and downstream mills maintaining short-covering activities on resumption. Producers maintained stable offers for DTYs, FDYs and POYs at end-September levels. In India, offers from major producers lifted offers with effect from 1 October. Meanwhile, the GST on filament yarns were reduced from 18% to 12% as a mid-course correction while compliances were eased to promote export. In Chinese local markets, 75/72 POY offers were flat at US$ 1.40-1.42 per kg in Shengze. Current quoted price for 115D/36F POY is US$ 1.11-1.12/kg FOB China, 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.

ACN

Acrylonitrile prices, have surged across region to an all-time high in the second half of September, were seen unmoved amid swathe of public holidays across the markets. However, amid supply constrain and rising cost, ACN spots prices continued to inch up while buyers have adopted wait?and?watch stance. Prices have surged 33% in the past two months and ACN price CFR Far East Asia was at US$ 1,874-1,876 per metric ton while Southeast Asian market recorded at US$1,814-1,816 per metric ton.

ASF

ASF markets were quiet last fortnight amid long holidays in China and South Korea. Thus, prices rolled over during the two weeks in most markets. Despite further uptrend in feedstock cost, industry look weak after fits of hikes. Current Taiwan origin 3D bright ASF tow offers were at US$ 2.10-2.20 per kg while in China, ASF prices were steady with medium-length fibre and cotton-type staple ruling at US$ 2.36-2.67 per kg. In India, offers were hiked US cents 31 to US$ 2.48-2.51 a kg.

CPL

Caprolactum prices jumped up in Asian markets during the first half of October despite a week-long national holiday in North Asia and the underlying benzene cost largely range bound. During the fortnight, market players mainly chose to wait and see, with a few sellers pushing prices higher. In China, local liquid good offers rose to US$ 2,350-2,410 per metric ton while European goods were traded at US$ 1,850?1,900 per metric ton CIF China.

NFY

NFY prices continued to edge up on higher nylon chip and Caprolactam cost. Demand for FDY was decent while it was modest for other specs. In China, nylon FDY70D/24F SD prices were firm at US$ 3.31-3.36 per kg, while DTY 70D priced at US$ 3.46-3.54 a kg. Nylon staple fiber 1.5D prices stood at US$ 3.01-3.09 per kg.

Pulp

Dissolving pulp markets in Asia saw suppliers generally rolling over offers raised in late September. European softwood pulp was at US$ 1,050 per metric ton while hardwood pulp offers rolled over at US$ 895 per metric ton, amid ample supply. In China, dissolving pulp trading prices for softwood pulp and hardwood pulp were at US$ 1,190-1,205 per metric ton and US$ 1,160-1,175 per metric ton, respectively.

VSF

VSF market sentiment in the first half of October was generally stable in Asia and price was flat. In China, post holidays, producers actively delivered goods to fulfill the previous orders, as fresh deals were limited. In India, VSF prices rolled over while the GST rate on downstream spun yarn was reduced to spur manmade fibre industry. In Chinese local markets, offers for medium-end VSF inched up to US$ 2.43-2.46 per kg, up US cents 2 while high-end rolled over at US$ 2.47-2.50 per kg. Export offers were flat at US$ 1.80-1.90 per kg FOB China.