Polyester markets were sluggish in June
Polyester prices were sluggish in China this June and weak Yuan pegged values down in US$ terms. Although the markets were supported by rising cost which continued to go up in PTA, PSF makers were unable to take advantage of this cost support.
PSF makers held offers stable in Zhejiang while markets in Shandong and Hebei also held stable. In Jiangsu and Zhejiang, offers for 1.4D direct-melt PSF were down US cents 5 at US$1.33-1.37 a kg, while the same in Fujian and Shandong were down in the range of US$1.33-1.38 a kg. In India, PSF prices were flat during the month but are reduced for July as buyers postponed replenishing due to weak demand. In India, PSF prices were at INR93.75 a kg or US$1.39 a kg and 1.4-2D at INR95 a kg (US$1.38 a kg), both down US cent 1, also due to weak INR.
Spun polyester yarn markets were stable to down in China and India in June as upstream markets were in seen weakening along with crude oil values. Global cotton markets were although subdued, local spot prices were seen gaining but did not have much impact on polyester markets. In China, polyester yarn prices were stable to down in Shengze, with 32s polyester yarn offers were at 14.21 Yuan a kg (US$2.19 a kg) while 60s were at 16.40 Yuan a kg (US$2.53 a kg) and 21s at 13.15 Yuan a kg (US$2.03 a kg). In India, polyester yarn prices generally rolled over given stable demand in domestic as well as export markets. 30s polyester knit yarn prices were flat at INR132 a kg (US$$1.94 a kg, down US cent 1 due to weak INR) in Ludhiana.
Polyester raw material, PTA prices rose 2% in Asia while MEG was cheaper by 5% in June. PTA markers averaged US$840.50a ton CFR China while offer from Taiwan/Korea were at US$850.50 a ton, both up US$18-19 on the month. The last week has seen prices surging somewhat recovering earlier losses completely.
MEG market fluctuated upward in Asia in June and prices continued to trend. Offers for July deliveries were higher than spot values in late June, but turned flat from spot numbers later. The CFR China markers averaged US$900 a ton and CFR South East Asia to US$888.50 a ton, down US$46-51 month on month.
