Polyester prices have further fallen in the last seven days in China, however possibly bottoming out in the coming days. The rebound of PTA prices and lower production levels at polyester plants could eventually trigger a rise of staple fiber and filament prices.
Polyester fiber prices are possibly bottoming out in China, after experiencing a sharp decline in the last two weeks.
Raw material costs of polyester fiber producers have already rebounded in the last days, with PTA clearly rising in China.
In addition, polyester producers have progressively reduced their operating rates in the last seven days in order to limit their offer and support prices.
The PSF v. PTA spread has fallen to only 1,900 yuan per metric ton today in China, against 2,415 yuan only two months ago.
The POY/PTA spread has similarly dropped from 2,535 to 1,860 yuan, reflecting the lower margins at fiber plants.
Although lower production levels could support prices, demand is however not expected rebounding on the other hand, whatever the sharp fall of fiber prices in the last two weeks.
Chinese downward processors are confronted with a fall of apparel exports this years while domestic retail sales are also very depressed on the clothing market.
From a week earlier, staple fiber and filament prices have continued falling.
Benchmark 1.4D PSF has lost 250 yuan or 3.2% whereas POY prices were down 100 yuan or 1.3%.
Polyester prices have been eventually lowered in Pakistan, with 1.4D PSF declining 5 rupees per kilo to 185 rupees (-2.6%).
From their level four weeks ago, PSF prices have lost more than 10% in dollar terms, after the rupee has further fallen against the dollar.