12 Oct 2017
China Sourcing Update: Prices of Chemical Textile Materials (Sep 2017)
1. Price indices of polyester rise and then retreat in September
The price indices of polyester went up during early to mid-September and then dropped a bit in late September (see exhibit 1). For example, the price index of polyester DTY climbed from 9,700 on 31 August to a seven-month high of 10,200 on 15 September, before easing to 10,150 on 27 September.
In our view, the rise in the prices of polyester during early to mid-September was due largely to high upstream costs and a strong restocking demand from downstream manufacturers as the industry entered high season.
Looking ahead, we believe that the prices of polyester will stay high in the near future as the prices of purified terephthalic acid (PTA), a major raw material of polyester, are likely to remain high; and the downstream demand for polyester is expected to remain strong in the current high season.
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