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PSF prices shoot up in 2011, buyers still line up
17
Feb '11
Polyester staple fiber price has increased by 19 percent since this year. The industry widely expects that there is still space for price increase of polyester staple fiber, due to supply and demand gap.

Textile enterprises have resumed production after the Spring Festival holiday. Demand for polyester staple fiber has increased. Major textile companies are still stepping up purchases, despite rise in polyester staple fiber price.

It is usually the peak season for the textile industry after the Spring Festival and downstream manufacturers are apprehensive that, they will be unable to complete orders, if they do not purchase enough raw materials.

Prices of PTA, the main raw material for polyester staple fiber, have also increased fiercely since this year. Domestic demand and supply gap of PTA is anticipated to reach four million tons in 2011.

Setting up a PTA greenfield project involves a lot of time and also has a higher investment threshold, hence, experts opine that, demand and supply gap of PTA cannot be quickly filled in the short term.

Fibre2fashion News Desk - China


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