Stability In China’s Polyester Staple Fibre Market Amidst Improving Trading Activity
- 17-Jun-2022 6:09 PM
- Journalist: Xiang Hong
Qingdao, China: Polyester Staple Fibre prices in China began to recover entering second half of June 2022, owing to smoothening market activity and expected demand. Today, Polyester Staple Fibre's spot price declined compared to the previous trading day. Due to shallow procurement by downstream units, market transactions had weakened in May alongside a weakened buying attitude but easing China’s market activity has normalized the pricing of its feedstock and the product.
Purified Terephthalic Acid and Mono-Ethylene Glycol, the feedstocks for Polyester Staple Fiber, are displaying mixed sentiments, with Purified Terephthalic Acid falling and Mono-Ethylene Glycol rising. Prices of Ethylene Glycol (MEG) in Asian markets increased in June, owing to increased demand and concerns of a supply shortage. Spot Mono Ethylene Glycol (MEG) prices in China are higher due to sedate supply and firmer demand. On the back of higher feedstock ethylene cost, Mono Ethylene Glycol (MEG) companies in China saw increased profits compared to last month. Meanwhile, easing crude oil costs normalizes Asia's Purified Terephthalic Acid (PTA) market. However, buyer mood remained lukewarm, and supply was plentiful in the market. In addition, the relaxation of Covid-restrictions in China has boosted market sentiment even further. But officials in Beijing and Shanghai have recently tightened restrictions due to a resurgence of incidents.
While, downstream weaving industries ran at an average pace, with enough demand coming from non-Woven carpets, wadding, filtration industries, as a polyfill for stuffing cushions, pillows, soft toys, quilts. According to the state government, the proposed Ludhiana textile park at Koom Kalan will boost the entire state of Punjab's textile exports and will be a game-changer for the industry. The state is already one of India's top ten textile exporters, and the new textile park will help it climb even higher. According to sources, Punjab's comprehensive textile value chain produces 23% of India's total cotton production. This initiative by state government is expected to relax the prices of Polyester Staple Fibre in India.
According to ChemAnanlyst Analysis, Polyester Staple Fibre demand is anticipated to boom in the coming months, while its price may ease with normalizing state's production and trading activity.