Polyester
Polyester staple fibre prices were raised in China, Pakistan and India over strong demand and rising cost during July.
In China, bolstered by rising costs of raw materials, polyester fibre market saw a rise in most offers from last month. Trading prices also trended up in line with offers in firm deals under negotiation. In Shandong and Hebei, prices firmed up amid modest sales. Offers for 1.4D direct-melt polyester staple were raised to 7.15 Yuan a kg (US$1.11 a kg, up US cents 5) in Jiangsu and Zhejiang while the same in Fujian and Shandong were also up US cents 4-5 a kg.
In Taiwan, offer for 1.4D were raised US cents 5 to US$1.11 a kg FOB.
In Pakistan, producers raised offers on rising cost and seeing margins squeezed by firmer cost. 1.4D PSF offers were up PakRs8 or US cents 3 to PakRs.213-216 a kg (US$1.33-1.35 a kg).
In India, producers offer for July were hiked given rising cost of raw materials. However, firm deals were under negotiation this month. Producers offers averaged INR98.25 a kg (US$1.35 a kg) for 1.2D and at INR99.50 a kg (US$1.34 a kg) for 1.4D, both up US cents 3.
Overall, with more planned shutdowns in China in August, offers from producers may remain stable to firm.
Nylon
Nylon-6 staple fiber offers were raised in July as upstream cost was up while polyamide or nylon chip cost was down. However, demand remained almost lukewarm. Fibre producers reported breakeven business, amid slightly improvement in demand. 1.5D offers averaged 16.20-17.00 Yuan a kg (US$2.55-2.63 a kg, up US cents 6 on the month at the lower end).
Acrylic
Acrylic staple fibre prices were lifted in July in China and India on range bound cost support while they were rolled over in Taiwan and Pakistan this July.
In China, reference prices of cotton-type staple fiber, tow and top were up on pressure from continuously rising costs in the month. The industrial run rate stayed at 67% as Jilin Chemical raised run rates, while Hebei Airuike shut down its unit. Other units were running at reduced rates. Demand was healthy as downstream yarn mills saw more export orders, so their run rates picked up. Prices for medium-length and cotton-type acrylic fibre 1.5D and 3D tow were steady at 18.45-18.65 Yuan a kg (US$2.85-2.88 a kg, up US cents 4).
Offers for Taiwan origin 1.5D acrylic fibre were rolled over on the week at US$2.85-2.90 a kg FOB.
In India, prices were raised for July but may retreat in August given lack of fresh orders and sliding feedstock cost. Offers for July at INR228-230 a kg (US$3.06-3.09 a kg, up US cents 5).
In Pakistan, overseas suppliers’ offers were steady at PakRs.450-455 a kg (US$2.80-2.83 a kg) in Karachi market.
Overall, acrylic fibre prices will probably go up under cost pressure while demand will rise gradually, together with export orders.
Viscose
Viscose staple fibre prices rose slightly in China during July, amid low inventory levels ahead of entering the peak season in August. Some producers reported tight supplies, and trading atmosphere was passable. Industrial run rate increased, following the unit restart and completion of maintenance. Inventory pressure was moderate, but due to high concentration, pricing between producers diverged. Also given rising cotton prices and expectation of downstream procurement in August, players were generally optimistic. In spot, average prices inched up to 12.83 Yuan a kg (US$1.98 a kg, up US cents 6) for 1.5D and 1.2D to 13.23 Yuan a kg (US$2.04 a kg, up US cents 9).
In Taiwan, offers for 1.5D were lifted US cents 5 to US$2.16 a kg FOB.
In Pakistan, overseas suppliers rolled over their offers. Offers stable in Karachi were at PakRs360-365 a kg (US$2.24-2.27 a kg).
In India, producers kept their offers steady as demand was still weak. 1.2-1.5D were at INR200-202 a kg (US$2.69-2.71 a kg).
Overall, prices are expected to trend up but inventory may continue to decline. Besides, cotton prices may play a role in directing viscose prices in coming weeks, coupled with downstream and terminal demand.
