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Prices of polyester may move northwards

27
Dec '08
The economic meltdown and the resultant slowdown had pushed down the prices of all commodities including crude oil and cotton. But now the trends seem to be reversing in the case of polyester fibres and yarns. An upward trend has been noticeable in prices of polyester intermediates in the international markets which have resulted in spurt of prices of polyester fibres and yarns.

This movement is also expected to have its effect on prices prevailing in the Indian markets, beginning from next month in the New Year. Polyester intermediate prices in the international market have perked up by more than 10-12 percent in December. Purified Terephthalic Acid (PTA) and Monoethylene Glycol (MEG) have respectively grown from US $595 per ton to $655 per ton and $500 per ton to $545 per ton.

This has impacted prices of polyester staple fibre which are also gaining ground and are more than likely to move in an upward curve in January due to rising prices of polyester intermediates. Many mills have switched to spinning of 100% polyester yarns or its blend due to firming in VSF and cotton prices. Experts believe that polyester prices have bottomed out and now it will only move northwards, but polyester fibre producers may be confronted with strong resistance from the buyers.

Fibre2fashion News Desk - India


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