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Raw material prices dip across polyester value-chain
May '11
On Monday, PTA spot price was under adjustment, MEG price slightly fell, semi-dull polyester chips and super bright polyester chips declined in price, CDP chip price corrected, PET bottle chip price tested lower level.

There was a price adjustment in acrylic staple fiber 1.5D × 38mm and acrylic top 3D × 102mm. CPL and nylon 6 chip prices declined.

Polyester market appeared sluggish during the weekend, trading atmosphere remained light, polyester filament market opened lower and continued decline on Monday.

A mainstream local manufacturer cut its semi-dull FDY product price by 100-300 Yuan / ton, DTY products and bright FDY products also declined by 100-200 Yuan / ton. However, one major direct spinning manufacturer in Shengze increased its DTY products by 100-200 Yuan/ ton.

Judging at current markets of upstream and downstream sectors, upstream raw material prices continue to decline, it will especially impact confidence of PTA futures, polyester market currently shows strong wait-and-see atmosphere. Polyester filament market is expected to continue testing lower level amid shocks in the short term.

Overall market of all cotton yarn continued to show a downward trend, prices fell further. Cotton yarn 21s and 32s had better demand from downstream jet weaving sector, while other specifications traded flat.

Price of 65/35 polyester and viscose yarn also decreased. Polyester and cotton yarn declined amid steadiness, but trade volume was flat.

Polyester yarn market fell amid steadiness, 45s slightly enlarged transaction volume. Rayon yarn 30s was more popular, while prices of individual species continued to drop.

Polyester staple fiber price was under suppression, market price averaged at 12,750 Yuan / ton. Market price of viscose staple fiber fell to 22,200 Yuan / ton.

Man-made yarn market is expected to grind lower in the short term.

Fibre2fashion News Desk - China

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