Polyester Staple market Stable to firm in China, Short term Outlook optimistic
- 02-Mar-2022 2:14 PM
- Journalist: Nina Jiang
As per latest assessment by ChemAnalyst, Polyester Staple Fibre (PSF) market has rebounded in last couple of weeks of February after strong bearish rally in the beginning of the month. Polyester Staple fibre prices have gained close to 4% from the third week of February consolidating on robust cost pressure and firm demand fundamentals.
Spot prices of Polyester staple fibre for 1.4 D grade were assessed at USD 1190 per MT while Contracts settled at USD 1230 per MT for the above grade after conclusion of February.
Polyester Staple fibre has gained from increasing costs of upstream ethylene glycol and Purified Terephthalic acid. Monoethylene glycol prices have increased by 1.23% in last two weeks while Purified Terephthalic Acid prices have increased by whopping 5%. Both feedstocks have consolidated on the strong climb in crude oil prices globally where Brent and WTI crude oil crossed USD 100 per barrel mark. Aromatics have been directly impacted as refiners have little space for negotiations. Consequently, upstream Paraxylene prices have been strong pressuring PTA values. Demand fundamental have been firm as well owing to strong resumption of weaving activities after holiday season.
As per ChemAnalyst, “Polyester staple fibre is expected to follow an uptrend rally in coming weeks as crude oil prices unlikely to relent in the short-term mounting strong pressure on refiners and influencing several key petrochemical value chains including PSF. However, long term outlook appears to be stable as crude oil and its derivatives are expected to normalize towards mid-April stabilizing downstream value chains.”