Polyester prices down as raw material retreats from high levels

Polyester

Polyester filament yarn prices declined rapidly this week in China increasingly squeezing margins while sales were losing traction. Makers were cutting production because of high costs and upcoming week-long National Day celebrations in early October. Producers were facing mounting cost pressure following spikes in MEG and PTA feedstock while buying appetite for polyester filament weakened ahead of the holidays as downstream sectors are expected to reduce production. Sales-to-output ratio fell to around 30-50% affected by consecutive sharp price increases, since July, prompting buyers to retreat to the sidelines. October is the usual peak sales season for PFY. In Pakistan, polyester DTY prices did not move this week while POY prices remained stable in India.

In China, POY offers fell US cents 4-5 with 75/72 at US$1.83-1.84 a kg in Shengze and 75/36 at US$1.80-1.81 a kg. In India, POY offers rolled over in INR and US terms, with 115/108 at INR110 a kg or US$1.53 a kg and 130/34 POY at INR102 a kg or US$1.42 a kg. In China, 75/72 intermingled DTY prices were at US$2.22-2.25 a kg and 75/36 at US$2.19-2.21 a kg, down US cent 2-5. In Pakistan, selling indications for 300/96 DTY intermingled local goods were stable over at PakRs80 a kg (US$1.43 a kg) while imported were at PakRs111 (US$1.99 a kg). FDY offers in China declined by US cents 4-5 with 50/24 at US$1.92-1.93 a kg and 150/96 FDY at US$1.67-1.68 a kg.

Nylon

Nylon filament yarn prices were pushed up by firming caprolactam and chip markets despite cautiousness in China. The rise was mild although as plant run rates of yarn makers was at 81%, implying ample supply. Downstream demand was thin but run rates were stable. Buying volume of FDY, DTY and POY was passable. Warp knitting mills and covering mills were operating at 70% rate, while circular knitting and lacing mills were stable at 50% run rates. Nylon-6 FDY prices inched up on the back of higher chip prices while DTY prices were firm on high feedstock cost. Downstream demand was tepid. In India, nylon filament prices generally rolled over this week as cost remained firmly stable.

In China, offers for nylon FDY70D/24F SD were raised at the upper end to 23.80-24.50 yuan a kg (US$3.48-3.58 a kg, up US cents 7), while DTY70D offers were hiked to 24.50-25.80 yuan a kg (US$3.58-3.77 a kg, up US cents 4). Cord fabric 1,260D prices offers were stable at 27.50-28 yuan a kg (US$4.02-4.10 a kg) while mono filament 30D prices rolled over at 25-25.50 yuan a kg (US$3.66-3.73 a kg). Nylon staple fibre 1.5D prices were raised at the lower end to 21.20-21.50 yuan a kg (US$3.10-3.15 a kg, up US cents 3). In India, 20 SD filament prices remained unchanged at INR280 a kg (US$3.90 a kg) in the Surat market.

Viscose

Viscose filament yarn prices were largely stable in China and India this week. In China, reportedly that liquidity of some products in Shengze had improved compared with previous weeks. Price-wise, offers for first-class, second-class and third-class VFY 120D were seen rolling over. Thus, prices were generally stable, and may remain firm in the coming weeks.

In China, VFY offers rolled over with 120D bright at 39.30 Yuan a kg (US$5.75 a kg), and dull at 38.95 Yuan a kg (US$5.70 a kg). 300D bright were flat at 29.75 Yuan a kg (US$4.35 a kg) and dull at 26.25 yuan a kg (US$3.84 a kg). In India, VFY prices were stable in INR terms and US$ terms, with 100D bright VFY at INR388 a kg (US$5.40 a kg) and 450D at INR 225 a kg (US$3.13 a kg).