Polyester chain prices have stayed relatively firm in the last week, with PTA and MEG even slightly recovering in the last days. Demand is bottoming out from textile producers after polyester prices have fallen to very competitive levels.
Polyester chain prices have failed in indicating clear directions in the past week, as demand was bottoming out from downward textile producers and operating rates were being reduced.
In the past seven days, PTA prices have fallen 20$ per metric ton or 2.7% on the international market in the Far East, as supplies were larger than expected.
Operating rates have however been kept at relatively high level at polyester plants in China, at about 88%, which is supporting demand for PTA and MEG.
Domestic PTA prices in China have therefore been firm, only losing 40 yuan or 0.7% in the past seven days.
MEG prices have stayed stable on both domestic and international markets.
PTA and MEG prices are not expected further falling, as margins have nearly disappeared and producers will now prefer reducing their operating rates.
MEGlobal has typically nominated its July ACP at $710 per MT, the same level as in June.
MEG futures have also stabilized in China where PTA prices have been kept unchanged.
Paraxylene prices have further declined however, with spot PX FOB Korea price falling below 800$ per MT.
Demand is bottoming out from textile producers and staple fiber and filament yarn prices have been slightly raised in the past days.
The market does not expect prices to rebound, but they could remain relatively stable in the coming period.
Polyester is increasingly competitive compared with cotton, which is supporting demand as everyone is looking for ways to lower production costs.