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.

Cotton, Viscose Ring, Viscose-Polyester, Acrylic, Etc. Yarn Prices on the International Market Statistical Report 8 July 2008 Spun yarn prices further rose on the international market in the last weeks, although less significantly than fiber prices. Cotton spinners are confronted with strong difficulties in India. Effective transaction prices are not in line with surging costs, as reflected by our exclusive series of price tables. Blended yarn prices clearly rose, being boosted by a rebound in polyester prices. Viscose yarn prices less significantly decreased. Cotton yarn prices slightly rose on the international market in the past weeks. Price offers were significantly raised, due to the surge in cotton prices in both India and Pakistan. Effective transaction prices which we below publish are showing some strong resistance from end-user buyers, for example in European or Brazilian textile and clothing companies. In India especially, the rise in raw material costs is resulting in major difficulties for a large number of textile companies as cotton is by far the most used fiber in the country. The ban in cotton exports requested by the textile industry will probably not be implemented by the government, as it could be against the long-term liberalisation in Indian economic regulations. Rupee's Decline is Helping On the other hand, import tariffs will be cut on cotton fibers, allowing domestic spinners to buy foreign cotton at lower prices. Not all cotton yarn exporters raised their prices in the past months. Spinners which are part of diversified groups got the financial support to absorb the surge in their production costs. The current fall in the rupee against the US dollar is also offering some opportunity to overcome the rise in cotton prices. In addition to higher cotton prices, Indian yarn exporters are however confronted with the general increase in production costs, especially energy prices. Fine count yarn prices were raised by 10 to 25 cents per kilo, as reflected by our table below, being released for the first time. Viscose yarn prices stopped dramatically falling in the past weeks, in line with a possible stabilization in viscose fiber prices on the global market. Yarn prices from China were down 15 cents per kilo (30s knitting for Italy). Prices of Polyester-Cotton and Polyester-Viscose yarns were up in the last month, reflecting a rebound in polyester staple fiber prices.

Cotton prices

US Cotton Futures. Physical Prices. Spot Prices in India and Pakistan
Cotton Prices Disconnected from Commodity Markets

7 July 2008
Cotton prices significantly fell in the past week on the international market. For the first time in months, a new rise in other commodity markets was ignored while an official report announcing a lower-than-expected decline in cotton areas in the United States triggered the decrease in cotton futures. An international cotton body however predicted a rise of 9 cents in physical prices in the next season.
For the first time in months, New York cotton futures last week seemed decoupled from the other commodity markets.
While crude oil and soybeans were rising to new record levels, cotton prices heavily fell at the same time after the US Department of Agriculture (USDA) predicted higher cotton areas in the United States than previously expected.
Back to Fundamentals
The report was considered "bearish" by the market with prices immediately losing ground.
By Thursday's closure on the eve of July 4th, key December 08 was down 6.05 cents from previous Friday or 7.43%.
Demand from spinners is remaining at a low level although prices clearly retreated over the past days.
U.S. export sales remained negligible in the week to June 26th, acording to the USDA with China being absent of the market.
Cotton market analysts are now expecting prices to further slide in the coming week.
Towards 82 cents
New projection data were however released by the ICAC, predicting lower ending stocks at the end of 2008-09 than earlier estimated.
Forecast level for average "A Index" was raised by 3 cents per pound, from the previous month, at 82 cents.
This would consist in a 9-cent rise in a single season (see our table below).
In India, the Government rejected any ban on cotton exports but admitted it could lower import tariffs.
Prices surged in the past months on the domestic market, last week triggering demonstrations by textile workers.
Cotton prices started declining in Pakistan, ahead of the arrival of the new crop.
The official spot rate was lowered by 100 rupees to 3,650 rupees per maund of 37.32 kilos (63.55 cents per pound).
This is still a much higher level than observed in the past months but lower than current price levels on the international market.

india's cotton output for new seed

India's Cotton Output May Reach Record on New Seed June 03 2008 India's Cotton Output May Reach Record on New Seed June 4 (Bloomberg) -- Cotton output in India, the world's third-largest grower, may rise to a record next year as farmers increase their use of genetically altered seeds to boost yields, a government official said. Production may total 32.5 million bales in the year starting October, compared with 31.5 million bales estimated for this year's crop, Textiles Commissioner Jagadip Narayan Singh said in an interview from New Delhi. A bale weighs 170 kilograms (375 pounds) in India. A record harvest may boost India's exports to countries including China, the world's biggest user of the fiber, and increase competition for suppliers from the U.S. and Uzbekistan. Higher production may also weigh on cotton prices, which gained 46 percent the past year as U.S. farmers reduced planting in favor of wheat and soybeans. ``With the area under genetically modified cotton expected to increase, production is certain to hit another record,'' Singh said. ``Yield is steadily rising and Maharashtra may record some increase in production because of better irrigation facilities.'' Maharashtra on India's western-central coast is the nation's biggest cotton-producing region. Land planted to gene-modified cotton seeds, including Monsanto's Bollgard II variety, may rise as much as 10 percent next year, Singh said. India's average per-hectare yield has almost doubled to 560 kilograms since it allowed farmers to use modified seeds for the first time in 2002. Farmers sowed gene-altered seeds across two- thirds of the 9.6 million hectares (23.7 million acres) planted to cotton this year, up from 50 percent a year earlier. Chinese Demand Higher output and improved fiber quality may boost India's exports next season as Chinese mills turn to the South Asian nation to bridge a decline in raw material from the U.S., the world's biggest supplier, D.K. Nair, director-general of the Confederation of Indian Textile Industry, said. ``You have a situation where exports are more profitable for traders than selling to Indian mills,'' Nair said by telephone from New Delhi. ``Rising Chinese demand and lower U.S. production is pushing up exports.'' Prices may stabilize around 70 cents a pound for the rest of the year, he said. Cotton reached 92.86 cents a pound on the ICE Futures U.S. exchange on March 5, the highest for a most-active contract since September 1995. The December contract fell 1.33 cents, or 1.8 percent, to settle at 72.83 cents a pound yesterday. Exports India's exports may total 8.5 million bales in the year ending Sept. 30, up 47 percent from a year earlier, according to the nation's Cotton Advisory Board. China will increase cotton imports 37 percent in the marketing year starting Aug. 1 as demand rises and production slips, the U.S. Department of Agriculture said May 28. Imports will rise to 3.7 million tons, or 17 million bales, from an estimated 2.7 million tons this year, according to a report from the USDA's Foreign Agricultural Service. The U.S. will produce 14.5 million bales in the year starting Aug. 1, down from 19.2 million in the current year, the USDA forecast May 9. A bale in the U.S. weighs 480 pounds (218 kilograms). Source: Bloomberg

PSF POY FDY DTY prices in India

PSF, POY, FDY, DTY Prices in India
India Polyester Fiber and Yarn Prices Monthly Report
11 June 2008
Polyester prices sharply increased in India in June, a record rise for a single month. This is mostly due to a strong rise in PTA prices on the international market while demand is also expected supporting prices at their new level. Polyester prices are now reaching a two-year high, in addition, reflected in our series of statistical tables from our India Correspondent.

Polyester prices in India have gone up by an unprecedented 9-10% in June from the previous month. A short supply of PTA on the international market and consecutively rising raw material costs resulted in this sudden surge. Prices are expected to continue rising for the next two to three months.
PTA, MEG prices up
PTA price in June rose over 15% to Rs 49,700 (US$1,168) a metric ton.
MEG less steeply increased, by only 5.5% to Rs 50,000 (US$1,176).
The upward movement in prices is the result of a sharp increase in crude oil prices.
Growing demand for PTA has also resulted in a short supply of the commodity globally.
This has further boosted PTA prices.
While MEG prices are expected to rise less sharply over the next few months, PTA could continue to increase for some more time.
PTA and MEG supply positions on the global market are expected to ease slightly by the end of the year, when new capacities will become operational.
Polyester yarn prices at highest in 2-3 years
In line with higher raw material costs, POY prices in June have increased 9-11% in India over the previous month.
A shortage of POY may even appear in the next 4-5 months.
New texturising machines are installed every month but there has been no capacity additions in POY.
Prices of fully drawn yarns have increased 13-18% over the previous month, and of textured yarns by 7-12%.
Polyester staple fibre prices have gone up by 11-13%.
Reliance Industries increased its PSF price on May 24 by Rs 4 (9 cents) a kg, and another hike of Rs 5 (11 cents) a kg was announced on June 1.
It is expected that texturisers may raise prices by another Rs 1-2 (2-4 cents) a kg in the following days.
These price levels of polyester yarns are the highest in the last three years in India. Polyester prices are 8-12% higher than in June 2007 and 11-13% higher than in June 2005.
Fabric movement supports higher prices
The price hike has come at the right time for texturisers, as the demand will partly support the higher prices.
Weavers in May had purchased stocks to cover their needs until June 20 and new orders for yarns are expected to come in after June 15.
Fabric production for the festive season has begun, fabric movement has picked up on the market and fabric prices are expected to move up by Rs 2-3 (4-7 cents) a meter in the coming months.
Some texturisers have reported good export orders, as the rupee continues to depreciate.
But with the higher prices and spiralling inflation in the country, export prices would have to go up.
Polyester production during 2007-08
Polyester production in the country has recorded a growth of around 8-10%.
During Indian fiscal year April-March 2007-08, PSF output at 877.18 million kgs was 11% higher than in the previous year.
Polyester filament yarn production at 1420.03 million kgs, grew almost 12%.
Higher production of fibres and yarns has been supported by the steadily rising fabric production.
At around 57,490 million square meters during 2007-08, fabric output recorded a growth of 7.68% over the previous year.

technical textiles - India

INDIA: Focussing on technical textiles

The technical textile industry could well develop into a vibrant, indigenous sector. Both domestic textile units and the Union Ministry of Textiles seem to be focusing attention on it

.According to a background paper prepared by the Ministry of Textiles on technical textile industry, which is used in diverse industries such as construction, railways and aero space, the world market for technical textiles is expected to be nearly 23.77 million tonnes by 2010, worth $127 billion. Asian countries, led by China and India, may drive the future growth of this industry.

The Indian technical textile industry is primarily active in garments and shoes, packaging materials, and sports wear and articles. The domestic market size was Rs. 23,300 crore in 2005-06 and this was expected to climb to Rs. 29,600 crore by 2007-08.The Textiles Ministry set up an ad-hoc committee in January, with the intention of converting it into a development council for growth and export promotion of technical textiles. It has also initiated a baseline survey of the domestic technical textile industry to assess the production, consumption, export, import and technology level.

Further, the modified Technology Upgradation Fund Scheme extends 10 per cent capital subsidy in addition to five per cent interest reimbursement for technical textile machinery.The ad hoc committee is working on issues such as recommending mandatory use of technical textiles in critical areas and controlling illegal imports.According to M. Senthil Kumar, one of the convenors of the committee, India has the resources for the development of this sector.

“We have a vibrant spinning sector, a fairly modernised weaving sector, and a strong knitting base. We also have a user industry.”He points out that in Europe and the U.K., use of fire retardant fabric is mandatory in public places such as theatres and transport sectors. So, the committee plans to identify some critical areas for mandatory use of technical textiles.Four centres of excellence will be established. The industry now faces a gap in technology, which is imported. The centres of excellence will coordinate with the industry for research and development.He feels that by using the existing resources, creating a raw material base, and developing products for bulk use, technical textiles can take off in the country on a large-scale. “We need to have our own legislation on some of these issues,” he says.

Indian spun yarn export prices

India Spun Yarn Export Prices 26 June 2008 Cotton yarn export prices fell in June in India, reflecting a low level in seasonal demand. Raw material costs rose at the same time, with margins of exporters being reduced as a result. The recent decline of the rupee against the dollar is however offering some relief to exporters. Demand and prices should rebound from August, in line with Asian textile production. - From our India Correspondent Reena Mital Spun yarn export prices from India have recorded a fall of around 3-6% in June compared to the previous month. This comes at a time when domestic prices of spun yarns have increased 6-10% during the same period. Depressed international demand is being cited as the main reason for this situation. Demand during this period is generally dull, as this is the sampling season. Most garment factories run below capacity, and are churning out samples to finalise orders for the coming seasons. This has resulted in low demand for textiles, including spun yarns, in India’s main export markets, Bangladesh and South Korea. Rising Stocks in Korea It is reported that most Korean traders are holding stocks, and the dull movement has resulted in low demand for the yarns. In Bangladesh, demand will pick up once the garment orders are finalized. Demand for yarns is expected to begin from August. But there are apprehensions that exports would be lower due to the slowdown in the US. Indian exporters are finding it difficult to offer such low prices in the export markets, at a time when raw material costs are surging. For instance, cotton yarn export prices have fallen 2-5% in June, even as raw cotton prices in the domestic market have increased 2-4% in the same month. And cotton yarn prices in the domestic market have also increased 3-4% in June. Cotton yarn export prices were steadily rising since March and peaked in May. Even as prices have fallen in June, these are still 1-2% higher than the levels of March. Blends are also falling Polyester-cotton yarn export prices in June have fallen 3-5%, even as polyester fibre prices during the same time rose 5-7%. Polyester-cotton export prices had begun moving up since March, but have sharply fallen in June, to almost touch the levels of March. Polyester-viscose export prices were also down 3-8% during June. Polyester-viscose export prices had fallen in April, and the fall is much steeper in June. As against this, polyester-cotton prices in the domestic market were 8-14% higher in June compared to May, while polyester-viscose prices also rose 7-11% during the same period. Acrylic spun yarn prices in the export markets have also dipped 7-10%, even as this is the peak demand period for this yarn. However, these prices are 6-10% higher than the prices prevailing in March. Viscose spun yarn export prices were fairly steady in June, while polyester spun yarns recorded a rise of 2-5% in prices. Polyester and cotton spun yarns are the fastest moving spun yarns in the export markets. The sudden dip in export prices, and the dull demand has led many exporters to shift focus to the domestic market, where realizations are better. But a liquidity crunch has prevented them from achieving a comfortable cash position. Help form falling rupee It is believed that exporters will eventually have to increase prices, and countries such as Bangladesh, South Korea and others will get their yarns from India at prices that are higher than the current levels, once demand picks up. Prices could begin rising from July onwards. The dollar over the last few months has been appreciating, and this has given much relief to exporters, who are now operating in a depressed market. Since January, the dollar has appreciated 7.8% against the rupee. In June alone, the dollar rose 5%. This has helped exporters offer lower prices in the international market. Prices of raw cotton have recorded a steep rise over the last 6 months, but a correction is expected to happen. Indian cotton prices are higher than that in Pakistan and even China. Consequently, India’s cotton exports have been affected. This could force cotton farmers and traders to release more cotton in the domestic market, easing supply and prices. But at the same time, new cotton sowings in the north have been impacted due to the early onset of monsoons, and this could mean a slightly lower cotton output, which could again lead to soaring cotton prices. It is reported that some mills have entered into cotton contracts for the new season at prices higher than the current levels. PTA and MEG prices are expected to continue rising for the next two months, after which there could be some easing of prices.