Manmade fibre prices up in March, but showed signs of fading
Manmade fibre prices in Asian markets continued to run up in early March 2021 extending the post Lunar New Year rising craze in China. Polyester, in particular, was the leader with support from upstream markets and some demand boosting in downstream sectors. Most of these movements in manmade fibre were led by China, when it returned from Lunar New year holidays. Margins expanded, utilization rates picked up entering March, but as markets settled, the bust was fading. Late march saw prices easing as they had risen earlier.
Polyester fibre
The largest manmade fibre, polyester staple fibre prices stabilized in China entering April, as material costs no more decline on the international market. The fall of the Yuan was also boosting exports and depressing offers on the international market, in contrast. In Jiangsu and Zhejiang producers offers dropped a bit on weekend while discussions for firm deals were just around offers and trading prices. In Fujian, producers kept offers unchanged amid modest sales. In Shandong and Hebei, producers adjusted offers as liquidity turned insipid.
In Pakistan, producers’ offer for polyester fibre were lifted three times during March.
In India, producers hiked twice during the March.
Nylon fibre
Nylon-6 staple fiber offers were raised 12% in China in March as upstream caprolactum as well as polyamide or nylon chip cost cost moved higher. High-end wool-like and low-end for core-spinning type nylon staple maker continued to face poor margins as cost rose.
Acrylic fibre
Acrylic staple fibre prices stayed firm and higher in March across Asia markets. Offers for Taiwan origin 1.5D acrylic fibre were up 30% month on month.
In China, reference prices of cotton-type staple fiber, tow and top were up 16% during the month. Although there were limited orders from spun yarn producers, demand was moderate. More than half of all acrylic fibre capacities have been offline after acrylonitrile prices went up at a higher speed in March. The industrial run rate reached a low of 55% this week.
In Pakistan, overseas offers for acrylic fibre jumped 23% in Karachi market during March.
In India, producers raised their offer by about 20% as acrylonitrile cost have risen 130% in March year on year while acrylic fibre prices managed to rise just 55% over the year.
Viscose fibre
Viscose staple fibre prices were raised in China and Pakistan during, as demand from spinners was firm, while they were rolled over in India. In China, viscose fibre market sentiment was thin in late March and producers still had some previous orders to fulfill, so inventory pressure was moderate. Thus, they maintained offers firm after some adjustments in the last week. However, traders lowered indications due to slow liquidity amid limited enquiries. Meanwhile, transactions were still underperforming.
In Pakistan, offers from overseas suppliers were raised in line with in other Asian markets.
