psf and fy-PTA n MEG prices in Asia

Polyester Staple Fibers and Filament Yarns-PTA

and MEG prices in Asia
Polyester prices more rapidly falling Weekly Report

Polyester prices are rapidly falling as China's textile industry is too long in returning to full production. Stocks have been accumulated which are depressing the market. The recent jump in glycol prices may result in lower margins for polyester producers although PTA is decreasing.
Polyester prices further fell in the past seven days in China, reflecting a very low level in demand.
Chinese textile industry is very long in returning to full production this year, following the usual slowdown of the summer period.
The delay could be due to higher production costs and a lower level in orders received by textile companies.
Average price for 1.4D was down another 100 yuan per ton in the past week (1 cent per kilo).
PSF prices lost 350 yuan in the past four weeks (-2%) in line with increasing competition between polyester producers.
Filament prices
Filament prices are more rapidly falling, in addition, still losing 50 to 200 yuan in the last seven days.
Stocks have been accumulated in anticipation of a rebound in orders from the textile industry and may now reach up to 20 days.
Operating rates are relatively low at polyester plants, not exceeding 70%.
The decline in demand from polyester producers is however depressing raw material costs.
PTA further fell in the past week. Glycol however rebounded in the last days after heavily declining by the end of last week.
MEG is back to extremely high levels which had not been seen for years.
Long term trends
Our long-term graph below shows the recent surge in prices to US$1,200 per ton, far above the usual range of US$800-1,000.
Polyester filament prices never stopped increasing in the past years, in line with higher-quality production and a lack of capacities.
By contrast, excess supply is maintaining PSF prices at an unchanged level over the long term, between 10,000 and 12,000 yuan per metric ton.