Polyester fiber and spun yarn prices have risen in China, India and Pakistan in February with profit margins however moving into different directions, depending on countries.
Polyester fiber and spun yarn prices have risen in China, India and Pakistan in the past month, with gross margins however moving into different directions depending on the country.
PSF prices have eventually bottomed out in China after remaining frozen for a large number of weeks.
The continuous rise of crude oil prices has triggered a rebound of material costs at polyester plants with a need to raise PSF prices.
Staple fiber prices have however only gained 51 yuan per metric ton or 0.6%, if considering the average price level over the month and not the price at the end of the period.
In India by contrast, PSF prices have been increased by 7 rupees per kilo or 7.2% at the start of February whereas they have further climbed 4 rupees or 2.1% in Pakistan.
Due to the limited rise of fiber prices in China, spun polyester prices have only gained 91 yuan per MT or 0.7% whereas being up 3 rupees or 2.1% in India and 7 rupees or 4.7% in Pakistan.
In US$ terms, PSF prices are not far from their level a year earlier in India and Pakistan, having however dropped 9% in China.
As a result, PSF prices are 11% higher in India than in China and 6% higher in Pakistan, still in US$ terms.
With PSF prices surging in India, margins have fallen more than 9% whereas the yarn v. fiber spread was up 0.8% in China, even surging 8.3% in Pakistan.
The absolute level of margins remains very low in India compared with China and especially Pakistan.
Source: Emergingtextiles
