High Crude Propels Polyester Prices Up

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PTA prices moderated somewhat in the third week of January and later moved up in Asia, buoyed by crude oil price. In China, spot PTA fell below PTA futures, with price spread widening in last two weeks. Asian PTA markers gained US$10 on the fortnight with CFR China at US$745-747 per metric ton while offer from Taiwan/Korea were at US$760-780 per metric ton. In India, prices fell and rose to remain flat at US$760 per metric ton CIF.


MEG prices in Asian markets softened continuously amid fluctuation in the last fortnight and falling ethylene cost. Downstream sector reported waning selling sentiment as many capacities will be shut for maintenance from end January to February. In US, MEG contract prices were assessed at a rollover as demand received a boost from the antifreeze and deicing sector. Asian MEG spot marker fell US$20 on the fortnight with CFR China at US$1,000-1,005 per metric ton and CFR South East Asia to US$1,012-1,017 per metric ton. In US, MEG contracts were assessed at US cents 41-47 per pound FOB USG.

PET Chips

Polyester chip markets weakened, and prices softened fortnight on fortnight. Semi dull chip market sentiment was quiet early in the last week as offers and discussions edged down. Super bright chip market mirrored the trend in semi dull chip market with mainstream offers and central values rolling over but moved down in the following days, while discussions also moved down. Semi dull chip offers were down at 8,250-8,300 Yuan per metric ton (US$1,300-1,310 per metric ton).


Polyester staple fibre markets in China were under slight correction in the last fortnight as PTA futures edged up while downstream spinners and traders were inactive to purchase with sidelined stance. Trading sentiment was tepid, and producers offloaded goods by offering discounts. In India, PSF prices were hard to fall after previous week’s price hike with support from rising feedstock and controllable inventory. In Jiangsu and Zhejiang, offers for 1.4D direct-melt PSF were at US$1.43-1.47 per kg, up-US cents 3-4 on the fortnight due to stronger Yuan. In India, PSF prices were raised with effect from 16 January with 1.2D pegged at INR92.25 per kg or US$1.45 per kg. Downstream, polyester yarn prices inched up reflecting recent hike in PSF prices. 30s polyester knit yarn prices were up INR1 to INR129 per kg (US$$2.03 per kg) in Ludhiana market.


Polyester filament yarn prices were flat to soft in China amid relatively firm upstream feedstock and passable trading atmosphere. Producers offering large promotions saw brisk sales. However, appreciating Yuan pegged values in US$ higher by about US cents 1-2 across specs. POY 75/72 offers rolled over in Yuan term and up US cents 2 in US$ term at US$1.51-1.53 per kg in Shengze. In India, POY prices were hiked from 16 January, which dampened the sentiment and trading atmosphere turned lusterless, citing low buying interest of downstream mills. In India, 130/34 POY were at INR102.25 per kg or US$1.59 per kg and 115/108 at INR108.25 per kg or US$1.71 per kg.


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