Polyester fiber prices could slightly decline in the coming days, as textile production is very slowly returning back to normal after Chinese holidays. Raw material costs of polyester producers are however rising over a rally of crude oil prices, meaning that any fall of polyester prices will be limited.
Polyester staple fiber and filament prices are expected slightly dropping in the coming days in China.
Whatever the rise of raw material costs at fiber plants, demand remains very weak as processing factories return very slowly to work.
Operating rates at spinning and filament weaving companies are staying below 50% whereas they have jumped above 80% at polyester fiber plants.
The textile production is always long in restarting after holidays in China, as workers are slowly returning to plants.
Others are very reluctant in working for the textile industry although companies need hiring new employees.
China’s economy is slowing down in addition, and processors do not wish accumulating stocks, as they expect prices to decline.
On the other side, crude oil prices have sharply rebounded in the past weeks, over new production cuts in OPEC countries and other oil producing nations.
Although this new rally could rapidly be short-lived, downward petrochemical prices are rising, including paraxylene and PTA.
As a result, any fall of polyester fiber prices could be limited by the decline of margins at polyester plants.
Source: Emergingtextiles
