Crude Oil: Price gains on easing oversupply concerns
Crude oil posted its biggest weekly gain in the last week of July this year since late May with a hike on Friday as data this week eased concerns about surplus supplies, after Saudi Arabia pledged to lower imports while U.S. crude supplies fell more than expected.The market was strengthened by larger than expected inventory drawdowns on Wednesday and signals from Saudi Arabia that the world’s biggest oil producer would further reduce output in August.Saudi Arabia pledged earlier this week to lower crude exports to 6.6 million barrels per day (bpd) in August, almost 1 million bpd below the level last year.The US crude futures settled at US$49.71 a barrel, up US$3.94 from previous week while European Brent crude futures settled at US$48.06 a barrel, rose US$4.46on the week. U.S. crude futures gained 8.6 percent for the week while Brent climbed 9.3 per cent. The gains in Brent pushed the difference between the two benchmarks to the widest in two months. Oilfield services firm Baker Hughes reported its weekly count of oil rigs operating in the United States ticked down by two rig to a total of 766. For the month, 10 oil rigs have been added, the fewest for a month since May 2016. Both markets are seeing a strong move in spreads through most of 2017 and 2018 due to shorts covering into heavy producer flow.

Polyester chain: PTA and MEG up, chips down
Ethylene prices in Asian markets rose day by day during the last week in July buoyed by limited product availability, higher downstream PE values coupled with a bullish buying sentiments in the region. The price rise was also a result of high upstream energy costs and strong downstream products demand. Formosa Petrochemical plans to shut its 1.2 mmt per year No.3 cracker, located at Mailiao, Taiwan, on August 15, 2017 for a maintenance turnaround. In Europe, ethylene spot market gained on tightness in supply amid turnaround season in August. In US, July ethylene contracts are expected to fall on lower spot prices. Paraxylene prices in Asia rose during the start of the week but fell midweek only to rise weekend supported by strong energy values and bolstering market sentiment.In US, spot paraxylenemoved up amid healthyexports and strong buying interest. In Europe, paraxylene market was bullish during the week tracking Asian gains.

Mono ethylene glycol prices in Asiarebounded during the week amid healthy transactions and decent demand. The market was also pulled up due to delay in plant restarts and unplanned shut downs thereby creating supply tightness in the market. In Europe, spot MEG moved up this week on firmer market fundamentals and better demand. In US, MEG contract prices were assessed at an increase from June due to steady US markets and higher prices in Asia. Purified terephthalic acid market stayed under adjustment this week and downstream weaving and texturing enterprises lowered run rates due to high temperature and poor demand.In Europe, contract prices were stable on lack of fresh indications. In US, July PTA contracts were unsettled and spot prices rolled over on the week.

Polyester chip prices were down in Asian markets despite upticks in upstream energy and MEG values. Semi dull chip market in China weakened this week.Offers were stable opening the week, but trading was insipid.Polyester filament yarn prices were stable across China, India and Pakistan supported by firm raw material cost. In China, PFY market saw thinner sales and players mainly held back on sidelines citing the mixed signals from raw materials market. Overall sales were lukewarm, and PFY values are expected to continue the range-bound.In Pakistan, selling indications for DTYs were generally unchanged with some spec maintaining stable offers in Karachi market. In India, POY offers were largely steady as producers are yet to make fresh offers after GST regime. Polyester staple fibre prices declined in China while prices saw uptrend in India and Pakistan.In Pakistan, polyester fiber prices recovered in the past four weeks with a sharp rise this week on healthy demand and moderate transactions.

Nylon Chain: Rising CPL and nylon chips push NFY prices up
Benzene prices in Asian markets fell opening the last weekof July but moved up gradually throughout the week in line with rising crude oil prices. In US, benzene spot prices fell despite rise in crude oil values. The prices saw the most pressure from lower styrene values as derivative styrene prices weakened. Marathon shuts US benzene, toluene units in Kentucky. In Europe, benzene spot market was under downward pressure this week with prices moving lower amid increased supply and rather stable demand.Caprolactum prices moved up in Asian markets on firm feedstock and supply constraint during the week. Although, buyers adopted cautious attitude with expectation of increased supply in future while demand was rigid.Given range-bound benzene and eased supply constraint, CPL market will move in a limited range, losing strength to inch up further.

Nylon or polyamide chip prices surged in Asian markets on high cost pressure amid and snug supply.Semi‐dull and bright nylon chip firmed up further, boosted by tight availability and improved buying sentiment.Trading values for bright conventional spinning nylon‐6 chips inched on decent demand for high‐end products.Nylon filament yarn market pulled on the back of strong caprolactum and nylon chip cost although demand was decent. Demand for monofilament and FDY was better thanexpectation while demand for other products was just tepid. Overall, nylon yarn market is expected to march higher slowly.

Acrylic Chain: ACN flat, ASF stable to up
Propylene prices in Asia saw mixed price trends in the last week of Julyalthough demand sentiments were strong amid tight supply. However, the increase in demand may not be sustained as market sources noted that August and September were weak demand season for propylene.In US, propylene markets saw little support from crude oil pricing, which struggled amid persistent oversupply.In Europe, chemical grade propylene prices hit a 6-week high while propylene contract reference price for August has been fully confirmed at a rollover fromJuly.

Acrylonitrile prices were flat in Asian markets amid decent downstream demand and limited supply. In China, buying interest was picking up onexpectation of hikes and lower inventory of suppliers, and ACN prices are likely to see the upwardmomentum. In US, spot acrylonitrileprices were firm on improving supplies in the market. In Europe, spot acrylonitrileprices were down while contract prices settled fully for the month. Acrylic staple fibre prices were stable to up in China while they rolled over in India and Pakistan. In China, prices inched up and demand rallied up slightly. As downstream mills slightly increased the replenishment volumes in line with firm feedstock prices, overall demand turned better. Prices rolled over in India and Pakistan after the revision in mid-July.

Viscose Chain: VSF price continues uptrend
Viscose staple fibre markets moved up in China and Pakistan while they remained unchanged in India. In China, market saw upward momentum recede during the week. However, downstream mills turned cautious, and only maintained small‐volume requirements. As a result, VSF producers saw limited fresh sales, but they still presented steady mindset on support of previous orders.In Pakistan, VSF prices rose over a surge of import prices and healthy demand. In India, viscose staple fibre market largely remained unchanged on the week. Viscose filament yarn markets in Asia were stable to weak amid thin trading atmosphere, as buying interest appeared to be low. As a result, inventory at some VFY producers piled up. Currently, VFY offers rolled over, while actual liquidity was lusterless, as buying interest was low amid thick sidelined stance amongconverters. In India, VFY prices were revised down with no improvements in demand, both on domestic and export markets.

Cotton: Prices up on high demand
US cotton futures on the ICE rose for second straight week, up about 0.6 percent. Prices were also high as better-than-expected weekly export sales data from the U.S. government suggested higher demand for the natural fiber. In Pakistan, slow trading was recorded at the Karachi Cotton Exchange while spot rates decreased. Textile industry federal secretary said Pakistan’s cotton production is likely to increase this year, as Punjab is successful in increasing the area under cultivation by 24 percent.In India, prices moved differently with coarser ones gaining and finer losing. Recent downpours have hit cotton and millet in Gujarat and Rajasthan, where farm experts now fear pest infestations.

Spun Yarn: Viscose and blended yarn prices up in India
Cotton yarn markets continued to remain tepid in China amid shrinking spot trades, however prices were stable on the week. Margins further deteriorated at spinning mills, as cotton prices were staying very firm on the domestic market. In India, the stability of cotton yarn prices was due to the weakness of demand.In Pakistan, cotton yarn prices remained unchanged in the last week while prices fellon the export market, after a fall in buying interest from the foreign customers.Polyester spun yarn offers declined in China and rolled over in Pakistan while it rose sharply in India during the week. In China, polyester spun yarn market weakened and transactions were moderate. In India, polyester spun yarn prices have jumped by nearly 8% in the past four weeks over a similar increase of the polyester fiber prices.In Pakistan, polyester yarn prices were flat after a recent spike amid stable fundamentals.

Viscose spun yarn prices were flat in China amid lackluster trading atmosphere. Downstream buying interest remained subdued discussions were largely heard to be range-bound. In India, viscose yarn prices were hiked after many weeks of stability due to support of firmer VSF cost. In Pakistan, viscose spun yarn prices edged up sharply for few specs while it fell for other specs in Karachi market. Blended yarn prices marched north in China and India while it was generally stable in Pakistan. In India, spun yarn prices have continued rising in the past week in India. Both PC and PV prices were seen climbing up in Ludhiana. In Pakistan, the market activities were subdued and prices notionally rolled over.