Polyester staple fibre makers hiked offers in China this week as US-China trade tension eased, feedstock prices firmed up and the market saw increased transaction volumes. Mainstream offers and discussions for 1.4D direct-melt-spun in Jiangsu and Zhejiang were raised although downstream buying was rational. In Shandong and Fujian offers were raised after they were dragged down by declining crude oil earlier, but buying interest cooled down slightly. In India, polyester fibre offers were cut for December by major producers seeing reduced cost in November and poor buying interest despite reductions in November. In Pakistan, producers’ offers for polyester fibre were raised this week after they were cut significantly in mid-November. However, downstream buying was still modest. Overall, markets are expected to warm up in the short-run.
In China, offers for 1.4D direct-melt PSF were hiked to 8.90-9.05 Yuan a kg (US$1.30-1.32 a kg, up US cents 6) in Jiangsu and Zhejiang while the same in Fujian and Shandong gained US cents 5 to US$1.30-1.33 a kg. Export offers were also up US cents 2 to around US$1.22-1.25 a kg FOB China. In Pakistan, 1.4D PSF producers’ offers were hiked PakRs3 to PakRs.187-189 a kg (US$1.34-1.35 a kg, up US cent 1). In India, PSF offers were reduced INR 8 with 1.2D to INR84.25 a kg (US$1.19 a kg) and 1.4-2D to INR83.50 a kg or US$1.18 a kg, both down US cents 13 also due to weak currency.
Nylon
Nylon-6 staple fibre 1.5D were down at the upper end as production was at breakeven levels amid tepid demand. Prices in India remained steady at the moment. In China, 1.5D prices declined at the upper end to 17.00-18.00 Yuan a kg (US$2.48-2.62 a kg, down US cents 5).
Acrylic
Acrylic staple fibre markets in Asia reacted to immediate and past movement in acrylonitrile prices. In China, domestic market, backed by rise in acrylonitrile, saw prices sitting steady at the moment, with a potential of rebound soon. While some users had already increased their buying, many were mainly watching feedstock movement. The industry run rate increased to 65% this week, implying rising supply, although many units were under various proportion of reductions. Downstream users showed intentions of bottoming out, as some spinners began to increase procurement, implying improved end-user demand. In India, producers’ offers were cut significantly for December as acrylonitrile, India CFR benchmark declined 19% in November. In Pakistan, acrylic fibre prices remained unchanged at the moment. Moving forward, a rally in upstream sector will support for acrylic fibre prices, which may move up in the coming weeks.
Taiwan origin 3D bright ASF tow offers rolled over at US$2.40-2.45 a kg while offers in China for medium-length and cotton-type acrylic fibre were flat at 16.20-16.40 Yuan a kg (US$2.36-2.39 a kg, up US cents 2 due to strong Yuan). In Pakistan, 1.2D ASF prices were unchanged in Karachi market at PakRs.345 a kg (US$2.47 a kg, down US cents 2 due to weak currency). In India, producers’ offers were cut significantly by INR29.50 for December to INR158-169.50 a kg (US$2.24-2.40 a kg, down US cents 45 from previous levels).
Viscose
Viscose staple fibre markets was stable to firm in China, seeing mainstream offers for medium-end and high-end goods inch up from previous week. Downstream mills mainly consumed stock or followed up with small-volume procurement, as buying interest was partly boosted by the news last week of truce on trade war between China and the US. It was reported that some mainstream producers raised selling prices due to huge loss and previous overselling. In Pakistan, the viscose fibre market in Karachi was stable and prices rolled over. In India, producers reduced offers for December after prolonged period of stability. However, the impact is still not known.
In China, spot offers rose on the week with 1.5D VSF at 13.90 Yuan a kg (US$2.02 a kg, up US cents 2) and 1.2D to 14.10 Yuan a kg (US$2.05 a kg, up US cents 2). In Pakistan, offers for 1.5D VSF remained unchanged at PakRs270-273 a kg (US$1.93-1.95 a kg, down US cent 1 due to weak currency) in Karachi. In India, prices were cut INR3 a kg with 1.2-2.0D VSF prices at INR147-197 a kg (US$2.08-2.79 a kg, down US cents 7-8 also due to weak INR).
