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Polyester staple fiber market not likely to improve

26 Mar '07
2 min read

The average price of domestically made polyester staple fiber last week lowered, dropping about 100-150 yuan per ton, though it tended to be stable in the second half of the week.

In eastern China market, the main price of 1.4D for delivery from factory with cash payment was 10700-10750 yuan per ton. In southern China market, the main price of 1.4D for delivery from factory declined to 10800-10900 yuan per ton. In Northern China market, the main price of 1.4D for delivery to buyer with cash payment was 10800-10900 yuan per ton.

During the same time, polyester staple fiber price in southwest market also went down, main market price mostly stayed in 10900-10950 yuan per ton. Purchase from downtrend sector being sluggish increased manufactures' inventory up to 15 days. Even in such high inventory pressures, polyester staple manufacturers still generally kept the operating rate at 70 percent.

From the favorable side, now there is sign for polyester materials in upper chains to warm up. PTA in domestic market dropped to 7900 yuan per ton, the lowest point in last week, but closed the week higher at 8050 yuan per ton. Price in overseas market quickly rebounded after falling to US $845 per ton. The week's main price settled at $850-855 per ton.

MEG market also climbed up from its bottom, with main market price traded at 8050-8100 yuan per ton. In overseas market the price closed at $860 per ton. So from the current situation, the future market of polyester staple fiber is expected to improve further.

Now let us look at unfavorable factors, first, in comparison to cotton, the current market price of polyester staple fiber still has less 2000 yuan per ton in price gap, cotton has clear cost advantage. Second, the current inventory of polyester staple fiber is high, plus its high operation rate, the market is facing inventory pressure. If manufacturers cannot reduce the operation rate and inventory, the pressure will be even greater on the future market.

Fibre2fashion, News Desk - China

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