World cotton consumption is projected to upsurge by five percent to touch 24.5 million tons, while cotton production to stand at 25.5 million tons in 2014-15, down from 26.1 million tons in 2013-14, according by International Cotton Advisory Committee (ICAC) as cotton and polyester prices congregate.
Asian purified terephthalic acid and mono ethylene glycol prices, both raw materials for making polyester, have started roaring their heads once again after hovering below US$950 a ton mark since late March. This time, while the market is yet to see buoyancy, producers’ move to cut operating rate to support prices have come to play.
As bearish sentiments continue to cast dark covering over the entire chemical fiber industry, prices of most varieties are hitting 11-year low. Producers are caught in great losses and the downtrend is predicted to extend for some more time. For immediate relief, manufacturers may successively start cutting production or plan turnarounds forcing supply tightness to support prices.
