23 Nov 2016
China Sourcing Update (Prices of Chemical Textile Materials) Oct 2016
1. Price indices of polyester go up in October and early November
The price indices of polyester trended upward in October and early November (see exhibit 1). For example, the price index of polyester DTY rose from 8,600 on 30 September to 9,050 on 31 October, and further to 9,100 on 11 November, the highest level since June 2015.
According to the local media, in the period, the prices of purified terephthalic acid (PTA), a major raw material of polyester, went up markedly; and the inventories held by polyester manufacturers dropped to low levels, resulting in a tight supply of polyester. Besides, the demand for polyester from downstream textiles manufacturers improved in the traditional high season of October.
Looking ahead, the upstream costs of polyester are likely to stay high, due to a tight supply of PTA; and the stock levels of polyester manufacturers are expected to remain low. Thus, we expect the prices of polyester to rise further in the near term.
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