Polyester Prices Will Remain Flat in August
Online, August 7, 2013 (Newswire.com) - According to the latest report "YnFx Polyester Price Forecast Report" released this week, the Asian polyester markets have not quite responded to the recent rise in oil, naphtha and paraxylene prices. Most of this upwards cost pressure has come from renewed fears surrounding the political situation in the Middle East rather than the markets itself. This brings closer the probability of polyester filament and staple fibre prices rolling over from their July levels, with a marginal changes on either side.
Paraxylene July contract price settlement was promptly concluded in Asia at US$1,410 a ton representing a rise of US$10 over June. Spot paraxylene prices were relatively stable at around US$1,437 a ton FOB Korea on an average, rising US$24 over the previous month. The hike in oil prices has been pushing feedstock costs and supporting paraxylene numbers. In case of PTA, some capacities were taken offline, helping margins to inch up. Spot rate during the month averaged US$1,085 a ton FOB Korea/Taiwan.
Polyester feedstock materials have been tracking the energy complex closely. In August, the oil markets will remain impacted by concern over supply disruptions in Iraq, Libya and Nigeria. Similarly, fibre intermediate - mono ethylene glycol and purified terephthalic acid markets have also been following up with their respective raw materials market. Spot PTA markets will be relatively quiet in August with speculation centering as to when prices will start falling while MEG August nominations were for a roll-over in one of the reported case while another deal was heard done at an increase of US$40 a ton over July.
In US, polyester filament yarn market had four months of relatively stability on the costs front. Filament producers, although ran through July on abbreviated loading there were no closures reported through the chain, like those seen in the previous year. In Europe, polyester fiber producers tried to defend existing pricing structure since significant parts of the industry were recylate-based with no immediate benefit from lower virgin raw material costs.
Although currently the global textile industry was moving into a seasonal lull, the markets in China are strong enough to support fibre and raw material prices, and to that extent, even the international chemicals fibres.
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