Polyester prices have stayed unchanged in the past seven days in China whatever the recent decline of material costs. Demand remains strong in this part of the year with too large stocks however limiting any price increase.
Polyester fiber prices are no more moving on China’s domestic market, as demand remains relatively strong over seasonal trends.
Price offers are not being raised, as material costs have declined in the past two weeks.
The drop of 3% of the VAT as of April 1st is offering optimistic prospects for the Chinese economy and a clear sign that other incentives could follow.
Operating rates are staying at very high levels at polyester fiber plants, being not far from 90%.
Inventories of downward processors could be rapidly digested in the coming weeks, which could allow polyester sellers to raise their prices offers.
Crude oil prices are also further rising, thanks to the production cuts in Saudi Arabia.
Paraxylene prices are however falling after a mega-complex has been commissioned in China therefore raising available quantities.
Downward PTA and polyester prices are therefore depressed by the fall of PX prices.
Source: Emergingtextiles
