Viscose and nylon staple prices gallop in the last week of May
Viscose (or rayon) and nylon staple prices gallop in Asian markets in the last week of May. They were prompted to move up due to production cuts in case of former and spike in raw material cost in case of latter. This also implies that demand is still good. Although crude oil market was sluggish with price moderating, it did not stop fibre intermediate prices from moving up. Crude has been a main driver of fibre intermediates markets.
[These are excerpts from Textile Beacon’s “Global Markets Weekly Review” of 4 May. The review is prepared by an author with long experience and expertise in global market intelligence]
Going ahead, manmade fibre markets may lose support of crude oil as OPEC and Russia were contemplating boosting output to compensate for supply losses from other producers. The record production in US had pulled over prices in the last week after they went volatile from supply disruptions in Venezuela and US sanctions on Iran. Russia could raise oil output within months if there is a decision to unwind the production cut agreement, Russian Energy Ministry official told News Agencies.
Viscose
Viscose staple fibre markets continued to remain supported from production cuts in the past which controlled inventory from piling and limiting supplies. The markets were also buoyed by the rally in cotton markets over the past two weeks. In China, VSF producers raised offers for medium-end and high-end goods while downstream mills were hectically buying, mostly stocking up materials in expectation that prices will rise further. Producers enjoyed good sale/production ratios and amid low inventory.
As VSF markets stepped into an upward trajectory, the momentum is likely to continue going forward while focus will be on demand in coming weeks. Offers for medium and high-end VSF jumped US$4 a kg week on week in China, taking the total rise to US cent 6 a kg in the last two weeks. In Pakistan, offers for 1.5D VSF were flat while in India, VSF prices did not moved in INR terms but were up US cents 3-4 due to strong INR.
Nylon
Nylon staple fiber 1.5D prices were hiked US cents 2 in the last week of May over and above the increase of US cents 15 in the preceding week. Since demand was modest for nylon staple, the increase in prices were largely due to sharp rise in raw material cost, particularly caprolactum. Meanwhile nylon filaments were also dearer, by US cents 7 for FDY70D/24F semi dull and by US cents 4 for DTY70D/24.
Caprolactum prices surged again in China as supply remained tight due to low run rates which has been pushing markets up. Prices of liquid and flake materials were quoted 3% higher week on week. This also pushed nylon or polyamide chip prices on the uptrend. Demand was also improving as operating rates were high at nylon yarn producers amid positive margins.
http://www.textilebeacon.com/news/nylon-filament-yarn-prices/
