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Polyester trade to recover in Q4
Oct '08
Experts anticipate that the polyester plants in China will have opportunity to raise better profits in the fourth quarter of 2008 as demand from downstream manufacturers is recovering and the prices of upstream raw materials like PTA and EG are dropping.

Reportedly, third quarter will be seen as the worst period for polyester manufacturers this year.

Industry insiders explain that in the third quarter average plunge in prices of 150D, 75D and 72D filaments was 5-7 percent per kilogram as compared to that in second quarter.

Insiders say that downstream manufacturers are lacking inventories, which will lead to significant rise in demand. Thus, the potential of price hike for polyester is also strong.

With the declining raw-material prices, polyester plants are expected to reduce their costs and related companies are expected to improve operating margins. Therefore, revenues and profits are bound to heat up month by month in the forth quarter.

Fibre2fashion News Desk - China

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