Rising crude sets polyester chain market on uptrend in September

Crude oil prices rose in September due to disruptions in US gulf coast aftermath Hurricane Harvey while geopolitical instability in Iraqi Kurdistan aided Brent to register its strongest third-quarter price performance since 2004. US crude prices jumped 4.2% on the month while Brent rose 7.6% as compared to previous month’s average. For September, Asian spot naphtha prices were up 10.4% on the month.

Ethylene prices in Asian markets were up in September on short coverings from traders amid tight supply. Prices were also strengthened in line with rising crude and naphtha values. In US, ethylene spot prices rose sharply as plant operations were disrupted due to Hurricane Harvey. In Europe, ethylene prices surged on the month amid global supply tightness. In September, CFR SE Asia ethylene price was up 10% from August while European spot inched up 0.5%. US spot prices surged 21.1% on the month.

Paraxylene prices in Asia gained as supply tightened and on concerns over shortfall in supply in the China market. In US, paraxylene market was reeling production and logistical disruptions caused by Hurricane Harvey earlier in September. In Europe, paraxylene prices moved up on sound demand and firming up ethylene cost. Asian marker, the CFR China rose 3.8% from last month while European paraxylene inched up 2.2%. In US, spot paraxylene prices were also up 0.6% on the month.

Mono ethylene glycol prices in Asia edged higher in September in tandem with gains in crude and ethylene values. In US, mono-ethylene glycol prices were underpinned by limited product availability. Europe, MEG bulk spot offers were heard higher due to continued limitations in material. Asian MEG prices were up 3.3% in September while European spot rose 8.2% on the month. US spot was also up 3.8% during the month.

Purified terephthalic acid prices in Asia inched up as there was limited product availability in the region. In Europe, PTA prices gained as upstream contract prices were also agreed up for the month. In September, PTA prices were up 3.5% from August while European price was up 1.1% on the month.

Polyester chip prices in Asia continued to rise in September on increased buying enquiries amid robust demand coming from Europe, America and Japan. Offers for semi dull chips rose 7.5% while that for super bright chip jumped 6.9% during the month.

Polyester staple fibre prices rose sharply in China as demand was firm amid short supply. In India, polyester staple fibre prices were generally stable during the month on firm demand. In Pakistan, polyester staple fiber prices continued to trend upwards on strong demand from downstream market. Prices were boosted by the new rise of PTA and MEG prices in the market. In China, 1.4D PSF offers were up US cents 11 a kg from August. In Pakistan, prices in Karachi rose US cents 2 a kg in September.

Polyester filament yarn prices inched up in China supported by rising PSF cost and stable trading atmosphere. In India, prices were steady in local currency however they were up in US$ terms. In Pakistan, prices largely rolled over during the month.

Courtesy: Weekly PriceWatch Report