Polyester staple fibre prices in China declined sharply, tracking softer feedstock PTA and MEG prices and slower demand. Sellers were looking to maintain sales volumes while market sentiment was dampened by recent losses in raw material costs. Export sales, meanwhile, were weighed down by the uncertainty arising from the US-China trade spat and a persistently strengthening of the US$. Steeper declines in feedstock prices have resulted in improved margins and operating rates for polyester fibre makers. However, bearish sentiment is expected to extend the downslide in prices as players will focus on macroeconomics and the feedstock market. Offers declined sharply with 1.4D direct-melt PSF at 10.05-10.20 Yuan a kg (US$1.45-1.47 a kg, down US cents 7) in Jiangsu and Zhejiang while the same in Fujian and Shandong at US$1.45-1.48 a kg, down US cents 7. Export offers also moderated by US cents 5 to around US$1.35 a kg FOB China.
In Pakistan, polyester fibre prices remained unchanged after they were raised in the past two weeks, while falling cotton prices also dampened the yarn market. 1.4D PSF producers’ offers remained flat at PakRs.205-207 a kg (US$1.54-1.55 a kg).
In India, producers’ offers rolled over as buyers were still managing liquidity. Offers remained unchanged both in INR terms and US$ terms with 1.2D at INR103.25 a kg (US$1.41 a kg) and 1.4-2D at INR102.50 a kg or US$1.40 a kg.
Nylon
In China, staple fibre 1.5D prices were also down at 19.00-20.50 Yuan a kg (US$2.73-2.95 a kg, down US cents 8).
Acrylic
Acrylic staple fibre prices remained unchanged in China while offers for Taiwan origin fibre were down again this week. In China, acrylic fibre prices came closer to breakeven point, with the constant decline in feedstock acrylonitrile prices, leading to an expansion in margins for acrylic fibre producers. This makes room for lowering offers later. Meanwhile, the average run rate was at 43% during the week, indicating a reduction in supply, as many units were idled, and some reduced production. Demand was weak, as downstream mills mostly purchased need-based volumes, with some already stocking up to cover the production in November. Prices in India and Pakistan remained unchanged on cost support although feedstock prices declined in India. Overall, the continuous decline of feedstock prices will improve margins of acrylic fibre producers, which can help improve operating rate and lower offers to push volumes.
Taiwan origin 3D bright ASF tow offers again rolled back US cents 5 to US$2.40-2.45 a kg, while offers in China for medium-length and cotton-type acrylic fibre remained unchanged at 20.50-21.90 Yuan a kg (US$2.95-3.01 a kg). In India, producers’ offers were stable for October at INR197-208.50 a kg (US$2.68-2.84 a kg). In Pakistan, 1.2D ASF prices rolled over in Karachi market at PakRs.345 a kg (US$2.58 a kg, down US cents 2 due to weak currency).
Viscose
Viscose staple fibre markets were in stalemate this week in China, while mainstream producers held on to their offers, firm deals were hard to conclude. Reportedly low-end trading prices for medium-end and high-end viscose fibre fell during the week as export markets were dismal and domestic buying was thin. This resulted in poor transactions overall. Sentiment apparently cooled down during the week, with prices showing signs of weakness – albeit support came from plant maintenance shutdown. In Pakistan, offers were raised back to early October levels as production was limited and import offers jumped on weak currency. In India, prices mostly rolled over, lacking any bullish factor. Overall, viscose fibre markets are expected to remain range bound on a weak note in coming weeks.
In China, offers for medium-end viscose goods moderated to 14.90-15.10 Yuan a kg (US$2.14-2.17 a kg, down US cents 4) and those for high-end goods were lower at 15.10-15.20 Yuan a kg (2.17-2.19 a kg, down US cents 3) from previous week. In spot, 1.5D VSF offers were down at 15.16 Yuan a kg (US$2.18 a kg) and 1.2D at 15.34 Yuan a kg (US$2.21 a kg). In India, 1.2-2.0D VSF prices rolled over at INR150-200 a kg (US$2.04-2.73 a kg). In Pakistan, offers for 1.5D VSF were raised Pakrs5 to PakRs270-273 a kg (US$2.02-2.04 a kg, up US cents 2) in Karachi.
