Global Manmade Fibre Markets In The Week Of February 11

MUMBAI (Commoditiescontrol) – Manmade fibre prices firmed up in Asian markets on cost support and steady pick up in demand. Rising cotton prices were also pushing spinners to manmade fibre like polyester for blending with cotton.

PSF
Polyester staple fibre prices moved up in China before settling this week, driven by rising costs of raw materials during the holidays. Producers raised offers in line with the overall polyester market, resuming after the holidays. However, downstream spun yarn producers resumed operation slowly, and they had stored up raw materials before the holiday. Offers for 1.4D direct-melt-spun PSF in Jiangsu and Zhejiang were hiked US cents 6-7 on the week to US$1.27-1.31 a kg.

In India, PSF markets remained supported by rising cotton prices and fluctuating sentiment in polyester yarn markets. Market participants mostly held wait-and-see stance. 1.2D PSF producers’ prices were stable at INR87.25 a kg or US$1.20 a kg, up US cent 1 from previous numbers, due to weak US$.

In Pakistan, PSF prices rolled over at PakRs124-126 a kg (US$1.18-1.20 a kg) given the strong activity in yarn market.

VSF
Viscose staple fibre prices continued to rise in China and in Pakistan this week. In China, downstream buying interest was improving, and some VSF producers started to control their off take volumes after sale/production ratios exceeded 100%. Offers for medium-end and high-end goods were hiked to US$2.50-2.51 a kg and US$2.53-2.54 a kg, both up US cents 6 on the week.

In Pakistan, domestic price of VSF surged in the week, as a result of a sharp rise of import offers. Government has removed a 3% tariff on VSF imports, which has however limited the rise in viscose prices on the domestic market. Prices are still expected to increase taking cue from China. 1.5D VSF prices surged PakRs10 to PakRs250-253 a kg (US$2.39-2.41 a kg, up US cents 10) in Karachi market.

In India, VSF prices rolled over as other fibres prices were hiked in last two weeks. Going ahead, prices will gradually follow up, and are likely to further rise in coming weeks. Prices were at INR144-151 kg (US$2.15-2.26 a kg, up US cents 2 due to weak US$).

ASF
Acrylic staple fibre prices increased on soaring acylonitrile prices and given low inventory, some specs turned hard to get, and in turn some downstream mills were worried on buying adequate raw materials. Downstream demand is sound, and may further improve with some mills in China resume operations next week. Medium-length fiber and cotton-type staple traded at US$1.97-2.17 a kg, up US cents 4 on the week.

ASF offers for Taiwan origin 3D bright ASF tow gained US cents 7 at the upper end at US$1.75-1.85 a kg.

Prices in Pakistan rolled over while the same in India stabilized after the previous week’s hike. ASF prices will remain stable following the price hikes and given firm ACN, producers may again operate in red. Thus, the sentiment is expected to remain strong in the short run. 1.2D ASF prices rolled over at PakRs.197 a kg (US$1.88 a kg).

In India, offers were unchanged at INR133-136 (US$2.01-2.03 a kg).

(By Commoditiescontrol Bureau; +91-22-40015522)