MUMBAI (Commoditiescontrol) – Polyester staple fiber (PSF) prices have rising in India and Pakistan over the past two days on rising cost of raw material (PTA and MEG) and taking cure from the firming cotton markets. In India, producers revised their prices up Rs2 a kg to Rs82.25 a kg. In Pakistan, Benchmark 1.4D gained Re.1 per kg to Rs.118 a kg. Both markets were being supported by the firm polyester intermediate prices.
Since beginning of 2016, PTA prices have surged 8% and MEG by 26% in Asian markets. Production of one unit of PSF requires 0.85 unit of PTA and 0.35 unit of MEG. Thus, galloping MEG has been the major propeller of PSF prices. Most of this rise in PSF intermediates price have come in the last quarter of 2016, when their feedstock - ethylene and paraxylene, cost surged.
Considering the last hike in PSF prices across Asian markets, PSF now (compared to beginning of 2016) in India is 12 per cent costlier while the same in Pakistan is dearer by 8%. However, China has witnessed a significant increase of 18 per cent in similar comparison.
The other factor that is driving polyester markets is cotton. Cotton has always been the victim of polyester in the price war. Cotton being a natural fibre and harvested once in a year, largely depends on the climatic conditions where it is grown. Further, its production estimated or the balance sheet is at large variance to reality and not that accurate like manmade fibre. Whenever, cotton prices tried to raise head, polyester could intervene to moderate the surge. Spinners either replace cotton by polyester or blend it with cotton to keep yarn prices and cost under control.
(By Commoditiescontrol Bureau; +91-22-40015522)
0 Comments 
Post Comment 
