Polyester fiber prices have stopped rising in the past days, after experiencing a sharp recovery in the past two weeks. PTA and MEG prices are now declining but any new rebound of crude oil prices could trigger a new recovery of polyester prices.
Polyester fiber prices have eventually stabilized after experiencing a sharp rebound in the past two weeks, especially filament prices.
Downstream fiber processors needed to replenish their stocks after holidays. With PTA and MEG prices significantly rising, they have expected a rebound of fiber prices, therefore triggering the recovery.
PTA and MEG prices have however begun stabilizing before the weekend, even declining on China’s domestic market.
Polyester chain prices could now stabilize at their new level, as demand for polyester is usually rising in this period of the year.
Operating rates have been raised at very high levels at the same time, now reaching 88%, which should limit any new rise of fiber prices.
Inventories have however dropped at fiber factories, falling to 12 days only at POY plants and 8 days at PSF plants.
Any new rebound of crude oil prices could therefore trigger a recovery of paraxylene, PTA and MEG prices which would be transmitted to the polyester market.
Source: Emergingtextiles
