March 23, 2011-Polyester Price In Jiangsu-Zhejiang Market, China

-The Polyester Price Is Weakly Consolidating

Today’s polyester price in Shengze Market became weak among the overall steady situation. A local full-dull products manufacturer reduced the price of some FDY and DTY products by 300 Yuan/ton and increased the price of some PTT and POY products by 300-1000 Yuan/ton. Now they quoted FDY 66D/48F for 19,500 Yuan/ton, DTY 50D/72F 27,000 Yuan/ton and POY 75D/72F 18,700 Yuan/ton. The direct spinning manufacturer who reduced the quotations yesterday unchanged the prices today, as well as the other melt spinning manufacturer. Manufacturers in Shengze all reported that the straddle attitude of the downstream market became strong and the sales were flat. After the reduction in prices yesterday in Taicang, all the local manufacturers stabilized their quotations. Now a local manufacturer quoted POY 75D/72F for 17,650 Yuan/ton (3-month Acceptance) and FDY 50D/24F 18,900 Yuan/ton (acceptance). Another manufacturer quoted POY 75D/72F for 17,300 Yuan/ton and POY 150D/144F 15,300 Yuan/ton. Manufacturers in Taicang reported that the storage was enlarging greatly and the amount was around 2-week.

Today’s polyester price in Zhejiang Market became weak too. The price dropped although the overall situation was stable in Xiao Shan. A local POY manufacturer continued to reduce the quotation by 100 Yuan/ton and now they quoted POY 150D/144F for 14,860 Yuan/ton. And other local manufacturer kept the previous quotations. One of the local mainstream manufacturer quoted FDY 66D/24F for 17,800 Yuan/ton and POY 75D/72F 17,100 Yuan/ton. The polyester price keeps steady in Tong Xiang today. After a slight reduction in priced yesterday, manufacturers there reported that the downstream market tended to buy goods with increased prices and the trade volume obviously decreased. The production-marketing in Tong Xiang was around 80% yesterday. Now a local manufacturer quoted POY 150D/144F for 15,500 Yuan/ton.

    The international oil price continued to increase yesterday over night. Ended by the close on March 23, in COMEX, the futures price of light crude oil delivered in April increased 1.67 dollars to 104.00 dollars per drum; the increasing rate was 1.6%. In London Market, the futures price of North Sea Brent Oil delivered in May increased 73 cents to 115.46 dollars per drum; the increasing rate was 0.6%. However, the PTA price became decreasing. The offering in East China buying market decreased to 11,600-11,650 Yuan/ton. The offering of Taiwan cargo in the selling market decreased to 1,525-1530 dollars/ton and the Korean goods decreased to 1,510 dollars/ton. The mainstream quotation of MEG in the buying market stays at 9,650 Yuan/ton. The closing price of spot exchange of semi-dull and light chips in Jiangsu-Zhejiang market stays at 13,700 Yuan/ton with acceptance and delivery and 13,600 Yuan/ton separately. It is clear that the strong tendency of the crude oil price cannot change the weakening of the polyester price. Therefore, it is predicted that the polyester price will keep decreasing.