Polyester filament prices decline as PTA cost plunges

Polyester

Polyester filament yarn offers moved down in China this week in tandem with the plunge of crude oil and PTA cost, while trading atmosphere was kept thin, seeing bearish mood of downstream mills. Overall sales-to-output ratio slowed to 40-50%, compared to 60% last week. In Shengze, producers lowered prices for some POY and FDY specs, while indications for DTYs were lowered marginally. In Zhejiang, given the poor raw material markets, PFY offers were kept stable to lower as trading atmosphere was dull, and participants lacked confidence about market future, and largely consumed their stocks. In Pakistan, offers for some DTYs were adjusted down in local markets to remain at par with imported goods. In India, POY sentiment changed little, with stable trading prices. Trading volume improved a bit, as the producers focused on liquidity. Selling indications for POYs were cut for H2 November last week.

In China, POY offers eased US cents 3 in Shengze with 75/72 at US$1.34-1.36 a kg and 75/36 to US$1.33-1.34 a kg. In India, POY offers were flat, with 115/108 at INR100 a kg or US$1.40 a kg and 130/34 POY at INR92 a kg or US$1.29 a kg, both up US cent 1 due to strong INR. In China, 75/72 intermingled DTY prices fell US cent 1 to US$1.83-1.85 a kg and 75/36 to US$1.82-1.83 a kg. In Pakistan, selling indications for local and imported goods were down PakRs1.50-3.00 or US cents 2-5 for 300/96 DTY non-intermingled to PakRs112 a kg (US$1.84 a kg) and imported goods to PakRs114 (US$1.87 a kg). In China, FDY offers fell US cents 3 for 50/24 at US$1.47-1.49 a kg and 150/96 FDY to US$1.28-1.30 a kg.

Nylon

Nylon filament yarn prices trended down in line with softening of spot and contract caprolactam values and slightly weak nylon chip markets. Downstream textile producers operated at low run rates thus limiting purchasing volume of FDY, DTY and POY due to rigid terminal demand. Warp knitting mills and covering mills were running at 60% run rates, and circular knitting and lacing mills at 40%. Nylon-6 FDY prices dipped on softening chip market and thin demand from terminal sectors. Nylon-6 DTY market was weak on low feedstock cost and tepid downstream demand. In India, nylon filament prices generally rolled over on cost support at the moment while downstream converters kept operating rates low in wait of new orders. Overall, nylon filament yarn prices may still touch the bottoms given the easing cost support.

In China, offers for nylon FDY70D/24F SD declined to 21.50-22.50 Yuan a kg (US$3.10-3.25 a kg, down US cents 7), while DTY70D offers fell at the upper end to 23.00-24.20 Yuan a kg (US$3.32-3.49 a kg, down US cents 4). Cord fabric 1,260D offers were down at 26.00-27.00 Yuan a kg (US$3.75-3.90 a kg, down US cents 7) while mono filament 30D prices rolled back to 22.80-24.00 Yuan a kg (US$3.29-3.46 a kg, down US cents 3). n India, 20 SD filament prices rolled over on the week at INR310 a kg (US$4.36 a kg, up US cents 4 due to weak US$) in the Surat market.

Viscose

Viscose filament yarn prices were largely stable in China and market liquidity was still modest, since downstream converters purchased small lots. Weak buying interest amid certain pressure from fund flow characterised the markets this week. Price-wise, offers for first-class, second-class and third-class VFY 120D were seen rolling over but slightly stronger Yuan pegged values up in US$ terms. However, trading prices partly eased, due to slow liquidity. In India, viscose filament prices did not change this week. Overall, given the approaching year end, demand for viscose filament was apparently weak, resulting in slower liquidity. Thus, prices are expected to remain range bound on a weak note in coming weeks.

In China, offers for viscose filament 120D bright were stable at 38.80 Yuan a kg (US$5.60 a kg), and dull at 38.45 Yuan a kg (US$5.55 a kg). 300D bright prices moderated to 29.20 Yuan a kg (US$4.21 a kg) and dull to 25.70 Yuan a kg (US$3.71 a kg). All quotes were up US cent 1 on the week due to slightly stronger currency. In India, VFY prices rolled over in INR and up US cents 3-5 in US$ terms, with 100D bright VFY at INR388 a kg (US$5.45 a kg) and 450D at INR 225 a kg (US$3.16 a kg).