PTA prices remained flat to slightly up in Asian markets in the first half of April amid limited offers in spot while participants held wait-and-see stance. Players were anxious over the trade war between China and US, and PTA market may not show any sign of significant rebound in coming weeks. However, there is limited room for price to decline with support from fundamental market. PTA markers inched up $4 on the fortnight CFR China at $765-767 per metric tonne and offer from Taiwan/Korea at $775-800 per metric tonne. In India, prices were up at $795 per metric tonne CIF.
MEG prices surged in Asian markets as demand continued to improve rapidly while inventories fell in China. Inventory levels dipped by around 8 per cent to 693 kilo tonne in East China after transportation along the Yangtze River was disrupted by poor weather conditions. However, if compared to inventory levels in early March, the current inventory is by up 4 per cent. Spot prices jumped $85 in the first two weeks with CFR China at $980-985 per metric tonne and CFR South East Asia at $985-990 per metric tonne. In Europe, April contract price settled marginally down from March and failed to meet the expectations of buyers. Spot prices fell throughout March as market turned bearish due to lack of demand. Bulk spot prices rolled over at Euro 760-770 per metric tonne CIF NWE while truck prices at Euro 820-835 per metric tonne FCA NWE.
PET Chips: Fibre grade polyester chip markets were calm and silent as most markets in China and Taiwan were closed for Qingming Festival during the second half of the fortnight. As raw material MEG rose sharply and PTA inching up, cost support remained firm. Semi dull chip offers were flat at 7,750-7,850 Yuan a tonne ($1,230-1,245 per tonne) while super bright chip offers also rolled over at 7,750-7,850 Yuan a tonne ($1,230-1,245 per tonne).
PSF markets were under fluctuation with most deals in China under negotiation. Mainstream offers for 1.4D direct-melt-spun PSF in Jiangsu and Zhejiang were cut in the second half of the fortnight. Offers for 1.4D direct-melt PSF were down US cents 1-2 and traded at $1.37-1.41 per kg (price Yuan converted to equivalent USD). In India, PSF offers were cut for April due to previous softening of PTA while downstream spinners bought hand to mouth volume as yarn markets were range bound on a weak note. Prices were reduced Rs. 2 or US cents 3 with 1.4D at Rs. 94.75 per kg or $1.46 per kg and 1.2D at Rs. 96 per kg ($1.47 per kg). Polyester spun yarn prices moderated in China following decline in PSF. 32s polyester yarn offers edged down further to 13.60 Yuan per kg ($2.16 per kg, down US cent 1) while 60s remained flat at 16.00 Yuan per kg ($2.54 per kg). In India, polyester spun yarn prices did not change after the PSF prices were lowered. 30s polyester knitting yarn prices at Rs. 132 per kg ($$2.03 per kg) in Ludhiana market.
PFY markets were quiet in China they mostly remained closed for second half of the fortnight with local prices were mostly stable, with sporadic offers adjusted up slightly. POY offers for 75/72 were at $1.46-1.48 per kg in Shengze and 75/36 to $1.45-1.46 per kg. In India, PFY market sentiment was stable, with few large-volume deals negotiable. Trading atmosphere was gentle, and downstream mills enjoyed passable margins. Selling indications for POYs mostly rolled over. POY offers rolled over with 115/108 at Rs. 110 per kg or $1.69 per kg and 130/34 POY at Rs. 102 per kg or $1.57 per kg.
