Polyester staple fiber prices bottomed out in the past seven days in China after declining in the preceding four-week period.
PSF prices rose from 10,300-10,600 yuan per ton up to 10,500-10,700 yuan. Prices bottomed out after production was partly reduced at Chinese polyester plants.
Demand was stronger in addition but the currently depressing atmosphere is still prevailing.
Impact of just negotiated agreement with the European Union is not yet clear. Textile production will certainly not be boosted after Beijing accepted limiting exports in ten major categories.
Polyester filament prices continued rising in the past seven-day period with textured yarns up 100 yuan (US$1.21 per kilo) in Qianqing. POY prices rose 200 yuan (US$2.42 per kilo) at the same time and FDY prices increased by 100 yuan.
in addition to lower polyester production, the rise in prices is mainly due to higher raw material costs.
Purified Terephthalic Acid (PTA) and Mono-Ethylene Glycol (MEG) that are used for making polyester chips clearly rebounded in the past seven days.
Raw material prices were boosted by higher Paraxylene (PX) and Ethylene prices that are used for respectively making PTA and MEG.
PX prices are jumping these days in Asia, rising from US$730 per ton FOB Korea by June 1 up to US$840 by mid-June.
PX prices could even reach US$850-900 by July.
Ethylene prices bottomed out in the last week, finally up US$20 per ton to US$680.
Boosted by higher PX prices, PTA prices rose about US$10 per ton CFR Asia in the past week.
After ethylene prices increased, MEG prices CFR China were up US$30 on average to US$750 per ton.
Major MEG producers SABIC and Shell both nominated their July prices at US$800 CFR Asia, unchanged from current month.
MEGlobal has previously announced a price of US$830 for July.
Oil prices are remaining at an extremely high level at the same time with US light reaching a 7-week high in the last days, not far from the US$55 barrier.
Crude prices rose 25% since the start of the year.
OPEC members are officially considering a new rise of 500,000 barrels in their daily quota to 28 million barrels.
The decision will have no effect, however, since OPEC already pumps more than 28 million barrels.
