13 September 2011
Polyester prices continued rising in the past seven days in China, on both staple fiber and filament markets. Demand is not so strong, however, with the price increase being mostly driven by higher raw material costs.
Polyester prices further rose in the last seven days in China, mainly driven by higher raw material costs and a low level in inventories.
Average price for 1.4D staple fibers was up 370 yuan per metric ton on the domestic market, finally rising 6.3% in the last four weeks.
PSF prices began bottoming out by mid-July and were further boosted in September by the rebound of cotton prices in China.
Filament prices are also increasing in the current period, gaining 100 to 200 yuan per metric ton (1 to 3 cents per kilo) in the last seven days.
FDY prices more clearly rose in the past weeks, than POY or DTY prices, however.
Whatever the current increase in polyester prices, market activity remains relatively low, if considering the period of the year.
Buyers remain extremely cautious while being however forced to accumulate stocks ahead of October holidays.
In addition, the continued rise in raw material costs of polyester makers is also stimulating demand for fibers, as processors expect prices to further increase in the coming weeks.
The spun yarn prices also remain very firm, although spun polyester prices and polycotton prices are no more evidently rising.
The level in export orders remains depressed, reflecting the global economic slowdown.
China's domestic apparel consumption remains very strong, allowing demand for polyester fibers to stay firm.
However, the growth in fiber use will never be the same as observed in the past 20 years, as the China's textile industry is now shifting to from a volume to a value driven strategy.