March was tricky for polyester pricing

March 2018 was tricky for the polyester pricing, wherein, end-product prices were mostly guided by their raw materials. In case of ethylene markets moved in line with turnarounds and buyers in Japan scrambling to buy for inventory building. Supplies are expected to increase with cargoes from Saudi Arabia being loaded to arrive by end-April. Paraxylene has been moving in line with crude oil prices while contracts are still not concluded for the month.

Polyester fibre

PSF prices fell sharply in China while they were hiked in Pakistan seeing the currency weaken sharply which made imports costlier. PSF market in Shandong and Hebei moderated with sidelined stance while in Fujian, prices moved sideways. In India, PSF prices were raised for the month. In Jiangsu and Zhejiang, offers for 1.4D direct-melt PSF moderated US cents 3 to US$1.39-1.42 a kg, while the same in Fujian and Shandong fell to US$1.38-1.45 a kg. In India, PSF prices were raised with 1.2D at INR96.75 a kg or US$1.49 a kg and 1.4-2D at INR98 a kg (US$1.50 a kg). Polyester spun yarn offers moved down in China, up in Pakistan and India during March. In China, 32s polyester yarn offers were down US cents 2 at US$2.17 a kg while 60s were up US cents 5 at US$2.53 a kg. 21s were US cents 4 at US$2.01 a kg. In India, polyester yarn prices were slightly down with 30s knit yarn prices at INR132 a kg (US$$2.03 a kg, down US cents 2) in Ludhiana market.

Polyester intermediates

PTA markets in Asia were in weak fluctuation, with price falling consecutively in all the weeks.  Upstream, paraxylene markets changed little upwards but PTA prices showed slight volatility but slightly weak. PTA Asian markers moderated US$1.75 on the month with CFR China at US$769-771 per ton while offer from Taiwan/Korea were down at US$785-801 per ton.

MEG prices, were on a downtrend but the fall was halted in the last week as demand improved with gradual increase in polyester production though an upward drive was limited. Inventories in east China were still 1% up from levels seen in late February decreased at 672 kilo ton. MEG spot prices declined US$118 on the month with CFR China at US$892-897 per ton and CFR South East Asia at US$907-912 per ton.

Source: Global Markets Weekly Reviews