Petrotahlil - Polyester players in Turkey reported lower offers for import PET textile chips and POY (Partially Oriented Yarn) while decreases for the latter one appeared to be more visible. The market sentiment was unfazed by higher crude oil futures as demand has yet to return to pre-pandemic levels across the board.
Textile grade PET prices hit lowest in 8 weeks
Asian PET textile chips was assessed $20/ton lower on the high end at $660-680/ton CIF Turkey, cash this week. “We are not hearing the levels of $700/ton anymore as demand is stagnant not only in Turkey but also elsewhere,” opined a seller.
Competition for market share persists for a month now
A competition between sellers first came to the forefront in mid-Juneas India resumed from a widespread lockdown related to the COVID-19 pandemic. Aggressively priced Indian POY compared to Chinese suppliers ended a two-week long firming trend at the time while Malaysian prices followed suit and were trimmed in early July.
POY offers at $800/ton CFR Turkey faded
Chinese POY offers with 300-500 D (denier) declined by $20-50/ton to $730-750/ton CIF Turkey, cash when compared to end June. Meanwhile, Indian POY was traded as low as at $700/ton depending on grade in a few cases.
Malaysian POY has also involved in the price competition recently. Prices for this origin stood $20-30/ton below last week at $780/ton CIF, cash.
Players monitor export destinations
Sellers are closely monitoring major polyester markets as well as main export destinations for end products including carpet, yarn and garments.
Most of them concurred that local demand has not recovered much in China’s local polyester market, which led to a stiff competition between India and China in Turkey.
“Converters in Turkey have adequate stocks for now, but lower Chinese offers may convince them to secure some more,” opined a trader.
Carpet exports to Saudi Arabia slowed down amid summer season and the upcoming Eid holiday, players noted. For POY, sellers hope to see a traditional demand recovery by August when European players will return from summer holidays. “It remains to be seen whether or not European players will shut their factories for holidays or prefer to offset their losses during pandemic,” said a participant.
Source : ChemOrbis
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