The financial report documenting the growth of RIL in the second quarter and first half of FY17 states that polyester products witnessed a demand growth of 6 per cent in the first half of this fiscal.
In an effort to boost textile exports, the Indian government has extended support to certain polyester downstream products under Merchandise Exports from India Scheme (MEIS). This is likely to aid the growth of textile exports, says the report.
Global polyethylene terephthalate (PET) markets witnessed seasonal slowdown in beverage consumption in 2Q FY17, thus PET prices reduced by 4 per cent quarter-on-quarter (QoQ). This impacted delta that was lower at $129/MT. Domestic demand for PET witnessed a surge of 28 per cent YoY on account of higher beverage consumption. However, heavy rains in many parts of the country capped the rise in this demand.
Paraxylene (PX) prices remain stable QoQ in 2Q FY17 due to two consecutive contract settlements for July and August 2016, helping sustain a higher delta of $404/MT during the quarter. Purified Terephthalic Acid (PTA) markets were steady, supported by lack of spot cargo availability as most of the volumes were committed in futures warehouses.
Prices remained stable QoQ tracking stable upstream in PX prices. PTA-PX delta continued to be stable at $101/MT in 2Q FY17. Functional PTA units in China were running at above 85 per cent in this quarter. Ethylene glycol (MEG) prices in 2Q FY17 were largely flat QoQ which aided to achieve stable margins of $369/MT over naphtha, reveals the report.
Polyester markets witnessed balanced fundamentals despite supply constraints during G20 summit in China. Restocking from downstream to offset the production loss during the summit led to a higher polyester output. Operating rates of polyester fibre and yarn plants in China were in the range of 80-83 per cent towards the end of the quarter.
Polyester filament yarn prices improved by 2 per cent, while staple fibre prices reduced by 4 per cent QoQ. Polyester filament yarn delta strengthened on account of healthy fabric and home textiles sales. Polyester Staple Fiber (PSF) delta softened amidst low recovery in price with respect to feedstock, however, PSF demand remained firm from non-woven segment in western world, adds the report. (KD)
Fibre2Fashion News Desk – India
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