Polyester fiber prices have bottomed out in China, over a jump of PTA prices in the past weeks, but the rise could be limited by a lack of downstream demand and high operating rates at polyester plants. PSF use has surged in the last year at spinning mills of Vietnam and Indonesia.
Polyester fiber prices have bottomed out at the end of last week, but they could however be unable to continue increasing in the coming period.
Staple fiber and filament prices are supported by a rise of material costs at polyester plants.
Although PTA prices have dropped since the beginning of the week, a series of maintenance operations are planned which should result in higher prices.
In addition, material costs are also climbing at PTA plants, in line with a current rebound of paraxylene prices.
The jump of crude oil prices in the past two weeks has actually supported most petrochemical prices.
If polyester intermediate prices are rising, demand is far from rebounding from downward processors of polyester fibers in China.
The textile industry continues waiting for a recovery. With May Day holidays looming, spinners and filament weavers may prefer delaying their orders.
Polyester fiber plants continue also running at full speed with operating rates at about 90% at filament plants and at about 82% at PSF plants.
Surging PSF use in Vietnam, Indonesia
China’s PSF exports have last year rebounded in dollar terms, thanks to a 20% surge of unit prices, on average.
Exports to Vietnam have gained 25.5% in volume terms, being up 42% in dollar terms, as a clear sign of the rapidly growing use of polyester fibers at Vietnamese spinning mills.
Shipments to Indonesia have surged 28% in volume terms, being up more than 50% in dollar terms.
By contrast, sales to Pakistan have not changed in volume terms, whereas exports to Bangladesh were rising 28%, but from a very low level.
The US market remains the largest buyer of Chinese PSF, with fiberfill accounting for the largest part of US demand.
Source: Emergingtextiles
