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Polyester Fiber Prices in China, India and Pakistan

Polyester fiber prices have rebounded in the last days in China whereas further declining in India, by contrast. Demand is recovering in China, after prices have significantly fallen with polyester use being currently favored by a riser of the Cotton-PSF price difference. 

Polyester prices have clearly bottomed out in the last days in China.

Benchmark 1.4D PSF has gained 310 yuan per metric ton in a single week, or 4.3%.

POY prices have risen 240 yuan per metric ton or 3.2%.

Demand is back on the polyester fiber market after inventories have heavily dropped in the past weeks, in line with a sharp decline of staple fiber and filament prices.

The significant decline of PSF prices has favored polyester fiber use at spinning mills, as cotton prices have less sharply fallen in the meantime.

Fiber substitution has been stimulated by a larger cotton-PSF price difference.

Optimism is also back in China ahead of the G8 meeting at the end of the month where China and the United States could eventually announce an agreement and the end of their trade war.

Alternatively, Washington could apply 25% additional tariffs to Chinese apparel, which would depress demand for polyester fibers.

Apparel exports from China are already plunging, as long-term factors continue favoring a relocation of Chinese apparel production.

Whatever the decisions of president Trump, buyers are slowly moving their supply chains out of China.

The rebound of demand for polyester fibers in the last days has also triggered a similar recovery of demand for PTA, as fiber producers were trying to replenish their stocks.

Operating rates have been raised at PTA plants in China, up from 77.9% to 82.3% in a few days only.

The current polyester rally could however rapidly end, after inventories will have risen enough at processing plants.

In absence of a trade deal at the end of the week, prices could even plunge to lower levels over very negative anticipations.

Sharp PSF fall in India

Polyester staple fiber prices have been lowered for the second time in three weeks in India.

From 96.50 rupees, PSF prices have been cut to 90.50 rupees per kilo, a fall of 6.2%.

Prices had already been reduced by 6 rupees at the start of the month, eventually dropping 11.7% in only three weeks.

In Pakistan by contrast, domestic PSF prices have been kept unchanged as a sharp fall of the rupee was protecting them from the decline of Chinese PSF offers.

Source: Emergingtextiles