Manmade fibre prices stable to up on firm cost

Manmade fibre prices in Asian markets were stable to up on cost support and rising crude values during the third week of May. Crude oil prices were volatile and changed market mood frequently. European Brent crude breached the US$80 a barrel mark for the first time since November 2014, boosted by plummeting Venezuelan production, strong global demand and looming US sanctions on Iran.

The surge brought manmade fibre raw material buyers to the market but purchases were in hand to mouth volumes since oil prices receded a bit after hitting the high. This also provided an opportunity to fibre makers to maintain or hike their prices in order to recoup some margins.

Polyester

PSF markets in Asia turned stable as PTA prices edged up and polyester prices rolled over. In China, mainstream offers for 1.4D direct-melt-spun PSF in Jiangsu and Zhejiang inched up a bit while they moved sideways in Shandong and Hebei moved sideways. In India, producers’ maintained their offers unchanged for the seventh consecutive weeks on firm cost. In Pakistan, PSF prices remained firm through May after they were raised early in the month citing rising cost.

Nylon

NSF prices rose in Asian markets as cost support from rising caprolactum and continued moving up of nylon chip prices which also halted market from further downtrend. Demand saw slight improvement as buyers were less cautious leading to some stability in the market. NSF prices jumped at the upper end of the price range implying buying appetite in the downstream sector.

Acrylic

ASF markets remained tight due reduced operating rate, particularly in China, with supported prices to firm to higher levels. In China, run rate was just 40%, making supplies shorter while offers for Taiwan origin 3D bright ASF tow jumped significantly. However, the cost pressure eased somewhat after several rounds of hikes in acrylonitrile prices. In India and Pakistan, producers’ prices rolled over given the still firm cost.

Viscose

VSF markets in China rebounded somewhat after producers raised offers in order to reduce losses. Market transaction picked up coinciding with the limit-up on cotton futures. Early in the week, VSF producers raised offers, but downstream mills did not follow up quickly. Later, with their stocks depleted, mills showed some intentions to stock up. In Pakistan and India, producers’ offers remained unchanged on cost support.

Source: Global Market Weekly Review