Polyester chain prices nosedive before peak season amid soft demand
Polyester markets saw price drops in the week ended 21 September 2018 on the back of lackluster trading sentiment before the peak season. October is the usual peak sales season for PFY, which is the largest user of PTA and MEG in China. Polyester filament yarn prices weakened in China due to low PSF cost and soft demand during the week. Prices in India and Pakistan were relatively firm in the week.
Polyester staple fibre prices dipped in China amid moderate buying sentiment and falling polyester chip cost during the week. Buyers were mostly seeking for low-end values and hence producers had to cut offers on poor confidence. Overall, PSF prices are likely to see downward corrections in coming weeks. Prices in India rolled over this week. In Pakistan, PSF prices rose for the third week reaching multi-year highs amid strong demand and cost pressure. Prices have increased around PakRs18 in the past six weeks.
Polyester chip prices in Asia declined sharply in the week on soft demand and significantly low PTA and MEG prices during the week. In China, semi dull chip offers were assessed down during the week as market sentiment was bearish amid lackluster trading activity. Buyers mainly adopted a wait-and see mood and thus purchase enquiries were limited. PET market faced heavy downward pressure due to plunge in raw material prices. CDP chip market also fell in the week. Overall, polyester chip prices are expected to range-bound in weakness given dull demand and no cost support in coming weeks.
Meanwhile, South Korea’s PET exports in August declined 10.7% as compared to the previous month.
In Europe, PET markets saw downticks in September for both grades on the back of lengthy supply.
Purified terephthalic acid (PTA) prices in Asia plunged in the week on slight increase in inventories due to national holiday in China amid weak downstream demand. In Europe, purified terephthalic acid prices were slightly high as supply remained constrained in the region. In US, PTA prices were stable during the week.
Mono ethylene glycol (MEG) prices in Asian markets declined on soft upstream prices amid moderate market sentiment in the week. European MEG spot prices face downward pressure on improved import supply during the week. In US, MEG prices were firm in the week.