Polyester filament prices remained today unchanged in China while prices of polyester staple fibers further rose 30 yuan per ton, as a clear sign that demand is stronger.
PSF prices were up 60 yuan from last Tuesday. In the past previous weeks, they had been stabilized at 10,400 yuan per metric ton.
Buyers of staple fibers are currently anticipating higher prices as a result of a rebound in PTA and MEG, the two raw materials used for producing polyester.
PTA and MEG further increased by US$15 yesterday, respectively reaching US$815 and US$810 CIF China (with 90 days credit term).
On the yuan market, PTA was up 200 yuan since the end of last week while MEG was rising 300 yuan per ton at the same time.
Chinese polyester plants are expected purchasing more raw materials in January, in addition, ahead of new year holidays.
The current rally in petrochemical prices could be stopped in the short term, however, after crude oil prices fell in the past three days.
In New York, January contract for US sweet, light crude declined below the $60-barrier yesterday, closing down 86 cents or 1.4 percent at US$59.99 per barrel.
Prices further slided this morning in Asia to US$59.85.
In addition to a rise in US inventories, the market is depressed by the announcement of a warmer than normal weather in the first quarter in the US.
This is in sharp contradiction with previous forecasts.
Oil prices could be stuck at US$60 in the coming months, as a result, analysts said.
