Polyester fibre prices rigid since late January, rolls over post holidays

Polyester fibre prices have remained unchanged since late January with an expectation of a pick-up after the week long Lunar New Year holidays in most part of Asia. Cost support also remained stable to weak, while demand was also to pick up in the week after the holidays. Most producers ramped up operating rate while spinning mills were yet to resume full operation.

Polyester fibre prices unmoved

Polyester staple fibre prices have remained rigid since late January in China and from early February in India and Pakistan. In China, PSF producers have reportedly ramped up run rate after the Spring Festival while cotton-spinning makers are yet resumed normal operation. As a result, demand was slow to pick up. Since holiday atmosphere was thick, downstream players focused on run rates and change in cost. In India, producers’ offers rolled over for February after having raised early in the month. In Pakistan too, offers remained unmoved.

Polyester filament operation resumes

Polyester filament producers gradually resumed operations in China although downstream mills were yet to begin buying activity, citing the labor shortage and the stocks in hand. In Pakistan, polyester DTY sales were insipid on the back of poor polyester feedstock and import values. In India, producers’ offers for POYs remained unchanged amid stable market sentiment. Firm deals remained sparse, as downstream mills were on wait-and-see stance, without intention to store up materials.

Polyester yarn lusterless

Polyester spun yarn prices moved sideways in China in the second week of February amid lackluster sales. Downstream, fabric market sentiment was flat, with unchanged run rates, thus offtake volumes for spun yarn was limited. Upstream polyester fibre prices were on a flat run since the past four week with no change in cost support for yarn markets. Offers of some popular specs like 21s, 32s, 50s and 60s rose but were negated by the weak Yuan when converted into US$ terms. Export offers were however, stable at the moment. In India, polyester yarn prices were raised to cover the hike in polyester fibre cost for February. However, the increase was smaller implying some cut in yarn margins. In Pakistan, polyester yarn prices were flat on the week as cotton market showed signs of weakness to some extent.

Source: Global Markets Weekly Review, Global Polyester Price Forecast – Monthly Report