Manmade fibre prices up on cost support, cotton remains flat to low

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Polyester fibre and yarn

Fibre price movements were mixed in September with manmade fibres moving up rapidly while cotton prices were subdued to marginally up across markets. They also supported spinners to adjust their prices in line with change in cost.


Polyester staple fibre prices moved up after moving sideways in China while they were lifted in Pakistan and India. However, most PSF suppliers held stable offers in late September while some cut down offers slightly amid sidelined stance and feedstock under downward pressure. Overall, discussionswere flat with moderate trading while some spinning mills closed units for holiday, leading to flagging demand. In China, 1.4D direct-melt-spun PSF offers in Jiangsu and Zhejiang averaged 8.72-8.89 Yuan a kg (US$1.33-1.35 a kg, up US cents 12 on the month). Export offers were heard at around US$1.17 a kg FOB China.


In Pakistan, PSF prices rose sharply to reflect the rise of import offers from China, which was an opportunity for domestic producers to lift their prices. Margins of PSF producers also rose over a decline of material costs, as PTA and MEG prices are now retreating to lower levels. 1.4D PSF prices jumped to PakRs.131.25-132.25 a kg (US$1.25-1.26 a kg, up US cents 3), while import offers from China were at US$1.21 a kg CNF Karachi.


In India, PSF prices were hiked mid-September to INR86.75 a kg for 2D or US$1.33 a kg while 1.4D was at INR86 a kg (US$1.32 a kg) and 1D to INR87.50 a kg (US$1.34 a kg). However, weak currency limited the increased in prices in US$ terms.


Recycled PSF markets were mixed but prices were up taking cue from the virgin fibre markets. In Jiangsu, selling ideas for 1.5D virgin‐like recycled PSF averaged US$1.16-1.19 a kg while recycled 6-15D 2-dimensional, hollow, siliconized PSF saw selling intentions averaging US$1.10-1.16 a kg while export offers were at US$1.15-1.22 a kg FOB.


Polyester yarn offers jumped 7-8% in September in China while Indian yarn was dearer by3% month on month. 32s yarn prices averaged US$2.00 a kg in China while 45s gained at US$2.14 a kg, both up US cent s 17 on the month). Polyester yarn made of recycled PSF also gained US cents 11-13 with 21s yarn at US$1.78 a kg and 32s at US$2.06 a kg. In Pakistan, polyester yarn prices were steady during the month in Karachi with 20s at PakRs112 per pound (US$2.34 a kg) and 30s at PakRs125 per pound (US$2.61 a kg). In India, polyester yarn 30 knit yarn prices gained INR3.90 on the month to average INR149.50 a kg (US$2.32 a kg, up US cents 4) in Ludhiana market.


Cotton and cotton yarn


Cotton prices were mostly flat to down across markets with US December futures falling in the last week but was up US cent 0.91 on the month to average US cents 70.14 per pound. The futures had jumped in the initial days of the month but fell later pressured by the approaching harvest in the US and fading concerns on unfavourable weather conditions in top producing state Texas. Rains in Texas had led to worries of a delay in harvest, which supported prices earlier.


Spot benchmark, the Cotlook A index partially regained US cent 0.75 to close at an average of US cents 80.19 per pound,or up 0.9% on the week.  In China, prices for some fresh cotton picked up in line with higher purchasing prices for seed cotton, with offers at US$2.52-2.56 a kg or even higher in a few cases. On the month, the China Cotton Index inched up 0.5% at 15,971 Yuan a ton.


In Pakistan, cotton prices drifted in line with global trend and easing supply. The official KCA spot rate fell PakRs48 on the month to average PakRs6,195 per maund ex-Karachi. Reports indicated that the market was moving on the international track and trading activity was good as the mills and spinners were trying to replenish stock.


In India, cotton prices nosedived amid hope of good yield losing INR450-3,540 per candy over the month. Experts opine that prices can go further down when arrival starts picking up around Diwali across mandis in the country. The increase in acreage compared to previous year and a bumper crop prospect are the biggest factors that can stabilise cotton prices at around or even below the MSP. This kharif, MSP for the medium staple fibre of 27.5-28.5mm length is fixed at INR4,020 per quintal. The Indian Cotton Association expect about 35 lakh more bales this year and prices to come down further. Arrival had started in mid-September in Punjab and nearly 4,500-5,000 bales are arriving in mandis every day.


Cotton yarn prices apparently stablised in China amid modest trading sentiment although conventional specs like combed 32s and 40s saw moderate transactions. In India, cotton yarn prices edged down, recording a 6% fall in September. In Pakistan after the impact of lower cotton prices, yarn prices were relatively stableon the Faisalabad yarn market, irrespective of the fresh level of demand from the yarn processors.


 In China, cotton yarn prices were stable with 21s combed US$3.45 a kg in Shengze and 32s at US$3.77 a kg). In India, 30s combed cotton yarn for knitting were INR14.20 cheaper at INR200 a kg or US$3.10 a kg, down US cents 25 on the month in Ludhiana. In Pakistan, cotton 30s carded rolled over at PakRs145per pound (US$3.03 a kg) in Faisalabad market while finer count 40s in Lahore was traded up at PakRs174.90 per pound (US$3.66 a kg) while 60s gained at PakRs.239.50 per pound (US$5.00 a kg, up US cents 12 on the month).

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