March 16, 2011 Upstream Prices-Mixed Up and Downs, The Polyester Yarn Price Is Mainly Straddle In Jiangsu-Zhejiang

The polyester yarn price is mainly in stalemate in Shengze, China today. The local mainstream manufacturers stabilized the quotations. Now a local direct spinning manufacturer quoted FDY 50D/24F for 19,900 Yuan/ton (6-month Acceptance), DTY 75D/72F 21,600 Yuan/ton (6-month Acceptance) and POY 75D/72F 18,100 Yuan/ton (6-month Acceptance). Another local melt spinning manufacturer quoted low-stretch DTY 150D/48F for 18,000 Yuan/ton and FDY 50D/48F 20,000 Yuan/ton. The other manufacturer quoted light FDY 40D/24F for 19,500 Yuan/ton. Although the manufacturers’ quotations keep unchanged, there was still negotiable space for price reduction if the buying amount was great in real exchange. The polyester price’s tendency is the same as yesterday’s in Taicang, keep unchanged. Now a local manufacturer quoted POY 75D/72F for 17,750 Yuan/ton (3-month Acceptance) and FDY 50D/24F for 19,100 Yuan/ton (Spot Exchange). The manufacturers said the downstream market was still holding back and the production-marketing was around 40-50%. The polyester price keeps consolidating in Zhang Jiagang. Now a local mainstream manufacturer quoted light FDY 40D/24F for 19,100 Yuan/ton (Spot Exchange). Although the quotation keeps the same, in practical transaction, the manufacturers have already given some privilege.

The polyester yarn price fell back a little in Xiao-Shao Market. Part of the manufacturers reduced the price for FDY products. For example, a manufacturer in Xiao Shan didn’t change the quotations of POY products, but generally reduced the price of FDY products for 100 Yuan/ton. Now they quoted POY 150D/144F for 15,050 Yuan/ton and 75D/72F 16,900 Yuan/ton. Another manufacturer’s quotations keep steady. Now they quoted FDY 66D/24F for 17,900 Yuan/ton and low-stretch DTY 150D/48F for 16,500 Yuan/ton. The manufacturers said that the stock pressure was big and the stock amount of FDY products was over 20-day. The polyester price also has no change in Tong Xiang. Now a local manufacturer quoted POY 150D/144F for 15,600 Yuan/ton and low-stretch DTY 150D/48F for 16,800 Yuan/ton. They said the production-marketing had no big change yesterday which was around 70-80%.

The international oil price greatly dropped yesterday. Ended by the close, in COMEX, the futures price of light crude oil delivered in April dropped dramatically by 4.01 dollars to 97.18 dollars per drum, whose decreasing rate was 3.96%, the lowest level among these three weeks. In London Market, the futures price of North Sea Brent light oil delivered in April greatly decreased 5.15 dollars to 108.52 dollars per drum, whose decreasing rate was 4.5%; the first time that it had dropped below 110 dollars per drum. However, the PX price sharply increased yesterday. Asian PX price continuously increased 33 dollars to 1,795 dollars FOB Korea; and the European PX price generally stayed at 1,780 dollars FOB Rotterdam. The upstream prices are mixed with ups and downs, which leads the marketers hard to judge the afterwards tendency. Therefore, the polyester yarn price in Jiangsu-Zhejiang Market will mostly keep steady and the market will still be straddle.