Polyester prices have stayed unchanged in the last seven days in China, although raw material costs have clearly dropped, therefore offering larger margins to fiber plants. Maintenance operations should support market prices in the coming period.
Whatever the fall of their material costs, polyester producers have not lowered their prices in the past seven days in China, meaning their margins have further improved.
Although operating rates are very high in addition, staple fiber and filament prices have stayed unchanged, thanks to a strong seasonal demand.
By contrast, MEG prices have heavily declined in the meantime, over excess supply on the global market.
PTA prices have begun following the same way, but a series of overhauls at Chinese plants should limit any drop of prices.
Maintenance operations at polyester plants will also lower operating rates in China overall, therefore supporting prices although new capacities of 80,000 metric tons per year will be added in April.
Inventory levels are relatively low at downward textile plants, meaning that demand could even rise over a need to replenish inventories ahead of May day holidays.
Source: Emergingtextiles
