Asian PX offers stay firm in last fortnight
In the period between December 15 and 30, selling offers for PX remained firm due to tight supply side. In the beginning of the fortnight, selling offers for PX were firm. PX price opened at US$ 1445/ton to US$ 1450/ton in F E Asian markets.
In S E Asian market, offer for PX was in the range of US$ 1465/ton to US$ 1475/ton. In European market, selling offers opened around US$ 1330/ton which quickly increased to US$ 1345/ton by the end of the first half of the fortnight. In Taiwanese market, PX price opened around US$ 1450/ton to US$ 1460/ton and remained stable around US$ 1455/ton during the first few days.
During the first half of the last fortnight, PX price remained volatile due to fluctuations in energy prices. Year-end pressure and moderate inventories led to a softening in demand from downstream side.
During the first half of the fortnight, selling offers for PX were around US$ 1450/ton in Chinese market and remained stable in the range of US$ 1445/ton to US$ 1455/ton by the end of the first half of the fortnight. In European and US market, selling offers for December were hard to conclude due to festive season. Selling offers in US and Europe were in the range of US$ 1330/ton to US$ 1350/ton. In Asian markets, selling offers for PX by optimistic sellers hovered around US$ 1460/ton.
In the second half of the period under review, PX offers remained range bound. During the second half of the fortnight, PX price went through fluctuations but stabilized around US$ 1440/ton in Asian markets. In PX market, price fell mainly due to year approach and festive season in Western world. Moreover, weak demand of PX from downstream added bearish pressure in buying sentiment.
In the second half, buying trend was quite in global markets but there were robust inquiries for January delivery. Due to the same reason, PX price increased for US and European delivery as well. By the end of the fortnight, PX prices also firmed up in US market, as price hovered around US$ 1345/ton.
Market speculators were bullish for January as contractual nomination was increased by all major players. S Oil nominated its January contractual price at around US$ 1530/ton where as JX Nippon oil and Idemitsu Kosan kept it around US$ 1510/ton and US$ 1550/ton respectively.
By the end of month, selling offers for PX hovered around US$ 1450/ton to US$ 1455/ton in F E Asian markets. In S E Asian market, selling offers were in the range of US$ 1475/ton to US$ 1480/ton. Selling offers for PX in US and Europe were in the range of US$ 1360/ton and US$ 1355/ton respectively. Selling offer for PX in Taiwanese market was in the range of US$ 1460/ton to US$ 1480/ton.
PX market is expected to remain firm in the short term future due to firm downstream demand.
Fibre2fashion News Desk - India