Polyester

Polyester staple fibre prices eased in China and declined in Pakistan but were up in India during May.

In Jiangsu and Zhejiang, the market saw offers and discussions falling in the first half of the month but recovered partially towards the end. Trading prices were below offers, indicating a discount in firm deals were under negotiation. In Fujian, nominations marched down and discussions trended lower. Offers for 1.4D direct-melt PSF were lowered to 6.65-6.80 Yuan a kg (US$1.03-1.06 a kg, down US cent 1) in Jiangsu and Zhejiang while the same in Fujian and Shandong were down similarly at US$1.04-1.07 a kg.

In Taiwan, offer for 1.4D were down US cents 4 at US$1.10 a kg FOB.

In Pakistan, polyester fibre market was mostly shut after the country returned to lockdown amid Eid holidays. No change was reported in prices in Karachi market during the month after offers were lowered by PakRa5 in the last week of April. Thus, 1.4D PSF offers averaged at PakRs.200-202 a kg (US$1.31-1.32 a kg, down US cents 5).

In India, producers kept their offers stable for May seeing downstream markets hard hit by restrictions to contain the second wave of the Covid-19. Offers for H2 April were lowered and thus May average were down compared to April at INR96.75 a kg (US$1.32 a kg) for 1.2D and at INR96 a kg (US$1.31 a kg) for 1.4D.

With India and Pakistan continuing with lockdown, although partially and China entering a seasonal low, demand will remain depressed in coming month.

Nylon

Nylon-6 staple fiber offers were raised 7% in China in May as upstream caprolactum as well as polyamide or nylon chip cost were raised. producers reported breakeven business, despite weak demand. Prices were down at lower end for high-end values goods wool-like grade items closing May.1.5D offers averaged 16.18-16.75 Yuan a kg (US$2.51-2.60 a kg, up US cents 14 on the month).

Acrylic

Acrylic staple fibre prices tumbled in China and India during May but gained somehow in Pakistan. Offers for Taiwan origin 1.5D acrylic fibre stayed frozen month on month to average US$2.95-3.10 a kg FOB Taiwan.

In China, reference prices of cotton-type staple fiber, tow and top were down 11% during the month. Althoguh there were limited orders from spun yarn producers, demand was moderate. More than half of all acrylic fibre capacities have been offline after acrylonitrile prices went up at a higher speed in March. The industrial run rate reached a low of 55% this week.

Prices for medium-length and cotton-type acrylic fibre 1.5D and 3D tow averaged 17.12-17.62 Yuan a kg (US$2.66-2.74 a kg, down US cents 33).

In Pakistan, overseas offers for acrylic fibre jumped 30% in Karachi market during May. 1.2D ASF offers averaged PakRs.452.50 a kg (US$2.95 a kg).

In India, producers lowered their offer by about 7% as acrylonitrile cost fell 11% in May month on month. Offers in May averaged INR232.50 a kg (US$3.17-3.20 a kg, down US cents 16).

Viscose

Viscose staple fibre prices were lowered in China and Pakistan during May, in line with weak demand from spinners and lower spun yarn prices, while they were rolled over in India. In China, producers offered large discounts, so transaction volumes increased somewhat. Downstream mills made massive procurement at low price levels, so inventory pressure on fibre producers eased somewhat. Prices for both medium-end and high-end goods were pegged lower while spot prices were pegged lower than offers. In spot, average prices fell US cents 8 with 1.5D at 13.90 Yuan a kg (US$2.16 a kg) and 1.2D to 14.48 Yuan a kg (US$2.25 a kg).

In Taiwan, offers for 1.5D were raised, in contrast by US cents 4 to US$2.10 a kg FOB, citing costlier raw material pulp cost.

In Pakistan, producers’ offers were lowered in the last week of April as lockdown and Eid holidays did not see any trading activity. Offers were maintained stable in May in expectation that recovery in demand will pick up after the Eid holidays, whereas the Covid crisis appear to have weakened. Offers for 1.5D VSF in Karachi averaged PakRs340-345 a kg (US$2.22-2.25a kg, down US cents 13-15).

In India, producers’ offers for 1.2-1.5D remained unchanged at INR195-197 a kg (US$2.67-2.70 a kg).

Overall, viscose fibre prices are expected to remain soft amid with bearish expectation in June.