27 January 2016
Polyester prices have slightly bottomed out in China, mostly due to lower production and stronger demand ahead of lunar year holidays. The current drop of cotton prices should however pressure polyester prices in the first weeks after holidays. Our weekly report covers the Polyester Staple Fiber (PSF) and Polyester Filament Yarn (PFY) prices on the domestic market, including a price comparison of polyester staple fibers with cotton and viscose. The gross margin of polyester spun yarn producers is also released.
Polyester prices have very slightly risen in the last seven-day period in China, with benchmark 1.4D now offered between 6,100 and 6,300 yuan per metric ton, depending on locations.
The rebound is due to a lower operating rate at Chinese plants whereas processors have replenished their stocks ahead of lunar year holidays.
Crude oil prices have also bottomed out from their historical lows without directly affecting polyester prices, however.
Raw material costs of polyester producers are steadily rising, over higher crude and naphtha prices, nevertheless.
Spun polyester producers have been unable to raise their price offers on a yarn market which remains pressured with oversupply.
As a result, gross margins are declining at spinning mills, as far as 100% polyester yarn production is concerned.
With cotton prices now sliding day after day on China's domestic market and import quotas available for purchasing lower-priced foreign fibers, demand for polyester could slow down in the first weeks after holidays.
More data are available on a daily and monthly basis about the Polyester Market Prices, covering the last seven years: