Polyester chain pricing down on weak note and strong USD in May
May 2018 saw polyester raw material markets going sluggish and moderating as crude markets weakened at the end of the month. The strengthening of US$ also pegged quotes in greenback down.
PSF makers in China kept their offers stable to slightly up as PTA market firmed up but downstream polyester market was on a weak note. In Jiangsu and Zhejiang, Offers for 1.4D direct-melt PSF rolled over at US$1.40 a kg, while the same in Fujian and Shandong averaged US$1.37-1.43 a kg, slightly down US cent 1 due to weak Yuan. In India, no revision was heard in PSF offers while market prices rolled over with support firm cost. 1.2D at INR94.75 a kg or US$1.39 a kg and 1.4-2D at INR96 a kg (US$1.41 a kg), both down US cents 4 due to weak INR.
Spun polyester yarn prices were seen lifted in China due to rise in cost early in the month while downstream demand remained normal. In Shengze, offers were raised across popular spec but finer count above 50s remained unchanged. Transaction for some specs was moderate during the month. 32s polyester yarn offers were lifted to average 14.05 Yuan a kg (US$2.20 a kg, up US cents 2).
In India, polyester yarn prices remained stable on the back of range-bound PTA and lower MEG. 30s polyester knit yarn prices remained unchanged at INR132 a kg (US$$1.96 a kg, down US cents 5 due to weak INR) in Ludhiana market.
Upstream, PTA prices in Asia rose 6% on the back of tight supply amid unplanned outages at regional plants, although demand was weak in key China market. PTA markers averaged US$820 a ton CFR China while offer from Taiwan/Korea were at US$835 a ton.
MEG prices continued to trend down as inventory in the key China market remained high. This implied overseas cargoes flow in domestic market which exerted further pressure on prices. Prices were down by 7% on the month which ended with discussions capped around US$900 per ton, after a bout of panic-selling. The CFR China marker fell to average of US$940 a ton and CFR South East Asia to US$935 a ton.
http://www.textilebeacon.com/market-info-3/
Source: Global Markets Weekly Review
