The Raw Material Is Firm, The Polyester Yarn Price Performs Well In Jiangsu-Zhejiang Market, China (March 3, 2011)

The polyester yarn price is still consolidating in Shengze, China today. Local manufacturers unchanged the quotations. A local direct spinning manufacturer quoted DTY 75D/72F for 21,400 Yuan/ton and POY 75D/72F 17,800 Yuan/ton. Another local melt spinning manufacturer quoted low-stretch DTY 150D/48F for 17,900 Yuan/ton. The other manufacturer reported that the spot exchange of FDY 50D/48F was 18, 800 Yuan/ton and light FDY 40D/24F 19,500 Yuan/ton. Manufacturers said that the production-marketing was good and can be balanced. The polyester yarn price has no change in Taicang, China. Now one of the local manufacturer quoted FDY 50D/24F for 19, 000 Yuan/ton (Spot Exchange) and POY 75D/72F is quoted 17, 350 Yuan/ton (Spot Exchange). Manufacturers said the sales increased yesterday and the production-marketing was around 90%. The polyester yarn price is also in deadlock in Zhang Jiagang. Now one of the local manufacturers quoted light FDY 40D/24F for 19,000 Yuan/ton. Manufacturers reported that the downstream buying amount became large.

The polyester yarn prices are in stalemate in Xiao-Shao Market, China. The local mainstream manufacturers’ quotation keeps unchanged. Now a local manufacturer in Xiao Shan quoted FDY 68D/24F for 17,900 Yuan/ton and low-stretch DTY 75/36 20,200 Yuan/ton. Another POY manufacturer quoted POY 75D/144F 17,560 Yuan/ton and POY 75D/72F 16,710Yuan/ton. One manufacturer in Shao Xing quoted light FDY 75D/36F for 16,900 Yuan/ton and FDY 68D/24F 17,500 Yuan/ton. Manufacturers said that the sales obviously raised yesterday. The polyester price keeps steady in Tong Xiang Market and some of the preferential measures are canceled. Now one of the local manufacturers quoted POY 150D/144F for 15,400 Yuan/ton and low-stretch DTY 150D/48F 16,500 Yuan/ton. The manufacturer said the production-marketing was above 100%.

The international oil price continued to rise over night yesterday. Ended by the close, in NYCE, the futures price of light oil delivered in April increased 2.60 dollars, closed at 102.23 dollars/drum and the increasing rate was 2.61%. In London Market, the futures price of North Sea Brent oil delivered in April increased 93 cents, closed at 116.35 dollars/drum refreshed the new high since August, 2008. Still yesterday, in PTA East China spot market, the buy offering stays at 11,700 Yuan/ton. The sell offering of PTA Taiwan increased to 1,515-1,520 dollars/ton; and the offering of the Korean goods increased to 1,500 dollars/ton. The mainstream quotation of spot goods and spot exchange of semi-dull chips in Jiangsu-Zhejiang market is around 13,600 Yuan/ton; and it of light chips is around 13,500 Yuan/ton. It is clear that the upstream raw material is still consolidating at a high level; so the straddling attitude of the downstream dealers is reducing and some manufacturers who have low storage begin to buy in. The production-marketing of part manufacturers who have good sales is above 200% and the previous preferential measures are canceled by some manufacturers. However, considering the overall market tendency at present, in my opinion, the polyester yarn manufacturers still focus on the selling amount at a short term.