Narrow Fluctuations In Polyester Prices

Market Intelligence

Narrow Fluctuations In Polyester Prices

PTA

Purified terephthalic acid spot market saw insufficient transactions and prices mainly swayed in a narrow range. The buying interest was moderate after contract prices were settled. In China, trading volume on warehouse receipts was small, and offers were lower than Futures. The CFR China marker was at US$ 650-652 per metric ton and CFR Southeast Asia at US$ 670-700 per metric ton, up US$ 2 on the fortnight. In China, offers for bonded goods were at US$ 670-675 per metric ton. Outlook for PTA suggest market will probably enter weak fluctuation in the short run.

MEG

MEG market retreated in the last week of October after rushing up in the third week. Asian MEG spot prices surged US$ 13 per metric ton in the second half of October with CFR China recorded at US$ 898-903 a ton and CFR South East Asia at US$ 920-925 a ton. In India, MEG prices climbed US$ 15 to US$ 900 a ton (domestic price converted to US$). It is predicted that MEG markets will mainly remain under fluctuation in the coming month.

PET Chips

Polyester chip markets were range bound over the last fortnight and sentiment changed marginally with moderate trading. Downstream converters had already stocked up chips and in turn were cautious in buying, leading to tepid trading. Water bottle grade PET chip offer prices are around US$ 1015-1030 per metric ton FOB China while deals were down around US$ 1000-1010 per metric ton FOB China. Generally, on the back of soft feedstock against decent demand, polyester chip market will see narrow fluctuation in coming month.

PSF

PSF prices edged down in China amid range-bound feedstock but had limited room to slump on support of firm fundamentals. Markets were looking for clues from changes in crude oil prices, trend in paraxylene market and the number of fresh orders from downstream spun yarn producers. The fortnight ended with 1.4D direct-melt-spun PSF offers in Jiangsu and Zhejiang at US$ 1.34-1.35 a kg, down by 1 US cent (local price converted to USD) due to weak currency. In India, PSF prices were raised INR 2 a kg as demand was seen passable. Volumes are expected to improve in November as demand for fabric in domestic and export markets was gradually picking up. PSF was dearer by Rs 2 at INR 88.75 per kg (US$ 1.36 per kg), up US cents 3 on the fortnight. Offers for 32s polyester yarn in China were almost flat on the fortnight at US$ 2.02/kg while 45s were stable at US$ 2.17/kg. In India, polyester yarn 30s knit yarn fell by around 10 US cents in the last two weeks to US$ 2.17 a kg in Ludhiana market.

PFY

Polyester filament yarn prices were stable with sporadic price hikes in China given high feedstock prices. Trading atmosphere was modest amid hand-to-mouth procurement during the second half of October. In Shandong, selling indications for DTY intermingled were heard largely stable, and trading atmosphere saw no improvement on weak demand. 75/72 POY offers in Shengze were flat at US$ 1.41-1.43 a kg during the fortnight. In India, offers from major producers lifted offers again by INR 2 per kg across specs. However, poor demand prompted sellers to offer discount to partially neutralise the hike. The recent reduction in GST rates on synthetic yarns, markets sentiment has improved and demand in expected to revive from mid-November. Local prices of 130/34 POY were at INR 96/kg (US$1.47) and 115/108 were INR 104/kg (US$ 1.60), both up US cents 3 on the fortnight.

Acrylonitrile (ACN)

Acrylonitrile prices continued to rise across regions in the second half of October, but were seen dipping in China. Prices posed a downward trend as suppliers stuck to their offers as market participants were expecting further fall. Asian marker the CFR Far East Asia closed October at US$ 1,999-2,001 per metrc ton, up US$ 100 in the last fortnight while the CFR China marker gained US$ 50 to US$ 1,850-1,900 per metric ton. Southeast marker was lifted US$85 to US$ 1,899-1,901 per metric ton. In India, spot offers were at US$ 1,850-1,900 per metric ton.

ASF

ASF markets were stable in China and India during the last fortnight of October. There into, producers rolled over offers, while inventory built up slightly in China. On the other side, downstream yarn mills replenished volumes to cover immediate needs only, reflecting some bearish mindset. The firmness in ACN cost saw Indian ASF makers roll over offers for the two straight weeks, implying they could pass on the cost. In China, ASF prices were steady with medium-length fibre and cotton-type staple ruling at US$ 2.58-2.66 per kg while in In India, offers were at US$ 2.48-2.51 per kg in local currency terms.

CPL

Caprolactum prices picked up rapidly in the third week of October on strong demand amid tight supply with good support from a range bound benzene market. Many large Caprolactam plants in China were shut due to environmental concerns, while those after recent restarts were unstable. Asian Caprolactam markets thus gained more than 5% in the week. The last week saw prices further rise amid strong selling intention. Liquid good offers in China rose to US$ 2,660 per metric ton, up US$ 170 on the fortnight while European goods were traded US$ 150 up at US$ 2,200?2,050 a ton CIF China.

NFY

NFY prices continued to pick up on the back of rebounding chip prices and improving downstream demand during the second half of October. And given low inventory pressure, run rates were still high amid good profits. Demand was passable during the fortnight. Export offers from China, nylon FDY 70D/24F SD prices were firm at US$ 3.54-3.61/kg, up 20 US cents during the last fortnight while DTY 70D jumped US cents 27 to US$ 3.61-3.76/kg. Nylon staple fiber 1.5D prices stood at US$ 3.31-3.40/kg, up US cents 20 on the fortnight.

RGWP

Rayon grade pulp prices were firm, with trading prices for hardwood pulp and softwood pulp at US$ 1,200 per metric ton and US$ 1,230 per metric ton, respectively. European softwood pulp deals were concluded at US$ 1,020-1,030 per metric a ton, with no fresh dynamics, while offers for hardwood pulp were seen at US$ 925-950 per metric ton.

VSF

VSF market sentiment was a bit weak in the last fortnight of October and some producers settled monthly prices, while downstream mills showing low buying interest amid sidelined stance. In India, VSF markets remained strong and prices remained unchanged. In China’s local markets, October ended with offers for medium-end VSF at US$ 2.32-2.36/kg, down US cents 13 compared to first half of the month. Export offers for VSF has shown signs of weakening and 1.4 denier VSF offers originating from Indonesia were around US$ 1.82- 1.84 per kg FOB.