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Polyester prices likely to go up by Jan 09

27
Dec '08
After the down trend of past several months, polyester fibre products have steadied, on the back of support from raw materials in upstream products, like EG (ethylene glycol), PTA (pure terephthalic acid); even export orders have increase by 10-20 percent.

Experts are expecting that prices of polyester products to rise by NT 1-2 yuan per kilogram in January next year, including POY (raw fibre), FIBRE (polyester cotton), DTY (polyester filament).

According to the latest statistics from the Association of Silk Fibre Processing, November production of processed polyester fibre within Taiwan was 40,055 tons; sales volume was 38,955 tons; inventories were 73,212 tons showcasing a fall from October. But inventories rose over 1000 tons, setting a record high for this year, showing extreme coldness in the market.

Industry insiders said that October and November witnessed an extremely low market demand; there were no real orders, as manufacturers were reluctant to lower price for attracting buyers. However, they cut production by an average of 40-50 percent.

The best part is, after mid-December, some export orders have started to flow in. According to statistics, orders have increased by 10-20 percent.

Experts say that there may be rebound from decline in polyester raw including spot prices of EG, PTA, drive polyester products of POY, DTY, as in China, prices of these have gone up 150 RMB yuan last week.

Fibre2fashion News Desk - China


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