Polyester prices and markets in early March
Polyester prices were mostly driven either sides by raw material cost and energy complex in the first full week of March 2018. Some intermediates cost which had risen significantly due to short supply, return back to normal, relieving cost pressure on polyester makers somewhat. Going ahead, polyester prices are likely to move in a narrow range with surge and plunge ruled out for the moment.
The Intermediates
PTA prices in Asia first rose on rising crude oil and Px prices but gave back more later in line with falling feedstock values, implying they were losing capability of resisting price drop. Sellers awaited demand recovery and remained cautious on market fundamentals. In Europe, PTA markets remained calm while US PTA contracts remained unchanged as it tracked higher PX contracts.
MEG markets in Asia opened with the fall followed by a pause but resumed trending down on weak energy market. In China, MEG prices softened on weak demand and ample supply including climbing inventories. European MEG sentiment was bearish as prices continue to trend down, following steep fall in Asia. In US, MEG markets were steady with no much movement in prices.
Polyester chip market fundamental in Asia weakened and prices went down on feedstock and weak demand. In Europe, March contracts were agreed in mixed proportion with higher rise for colourless R-PET flake and a smaller for mixed coloured flake.
Polyester filament
PFY prices edged down in China, given the slump of PTA futures and plunge in MEG cost. Trading atmosphere was thin, although some producers offering discounts enjoyed good liquidity. In India, POY demand was mute on still poor global feedstock performance. Demand from converter was weak after the recent price hike. In Pakistan, a few changes were seen in selling indications for DTY in Karachi markets for both, domestic and import goods.
Polyester fibre and yarn
Polyester prices (PSF) fell in China as crude oil plummeted and PTA and MEG following suit promoting PSF producers to cut offers to boost demand. In Pakistan, PSF did not change after margins jumped to highest level with new drop of MEG prices. In India, PSF prices rolled over, but demand weakened on previous price hike as downstream spinning mills were not active amid cautious sentiment.
Polyester spun yarn prices moved down in China with offers for 32s yarn was lowered amid moderate transaction. However, finer count 60s yarn price moved up rapidly, implying a pick-up in demand in recent weeks. In Pakistan, polyester yarn prices remained unchanged as PSF prices did not change while spinners were using more PSF due to lack of cotton availability. In India, polyester yarn prices did not change since past five weeks, although PSF prices were raised for March.
