YnFxPriceWatch Report - October 2017

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Polyester chain: PSF demand seasonally strong, PFY rolls over

Polyester chip prices in Asia were steady in the last week of October on the back of firm PTA and MEG market. In China, semi dull chip priceswere stable amid moderate trading that week. Downstream converters had already stocked up and in turn adopted cautious attitude, leading to tepid trading.Overall, given firm feedstock sentiment and decent demand, FGPET chip market is likely to range-bound in coming weeks. Polyester staple fibre prices fell in China while they were stable in India and Pakistan. In China, PSF offers edged down during the week since market was dominated by sidelined stance. Demand for PSF was seasonally strong at around the September to October period, prompted Chinese producers to raise their export offers during that period.Rigid demand for PSF still existed. PFY prices rolled over in the Asian markets of China, India and Pakistan.

Nylon Chain: Rising crude sets nylon market on uptrend

Caprolactum prices trended up in the last week of October in line with rising benzene cost and tight supply. In China, CPL offers were up that week due to short supply amid sound demand. Overall, CPL prices are likely to move up further on tight supply.Nylon or polyamide chip prices generally climbed in Asia amidstrong caprolactum cost during the week. In China, nylon market rise slowed down as plants continued to operate at high ratesthat week. Purchasing sentiment in the downstream was mixed, and as a result, bright nylon chip market stabilized andsemi-dull nylon-6 chip headed further north. Overall, nylon chips prices are likely to fluctuate on a bit higher note in coming weeks. Nylon filament yarn prices gained that weeksupported byrising raw material cost and improving downstream demand.Overall, nylon yarn prices are likely to be stable in coming weeks.

Acrylic Chain: ACN prices continue to rise, ASF steady

Acrylonitrile prices in Asian markets rose on persistent tight supply across the region in the last week of October. Strong demand from downstream market also supported that robust rise in prices since there was limited product availability. Prices have rose more than US$500 in the past 2 months amid tight market. China’s acrylonitrile imports in September increased by 67% as compared to Augustat 26,124 tons on domestic tight supply. In Europe, acrylonitrile spot prices jumped that week as deals became more consistent but volumes were still difficult to obtain. In US, ACN export spot prices declined during the week on expected production improvements in future. Acrylic staple fibre prices rolled over in the Asian markets of China, India and Pakistan.

Viscose Chain: VSF price falls in China

In the last week of October, viscose staple fibre prices were down in China while they were firm in India and Pakistan. In China, viscose staple fibreprices moved down amid increased supply as plants ran at higher rates during the week. Cost pressure was high on the back offirm dissolving pulp prices at home and abroad. Downstream demand weakened significantly, resulting in sluggish VSF sales and in turn higherinventory at VSF producers. Some VSF producers carried out monthly settlement prices, while downstream mills showed low buying interest amidsidelined stance. Overall, VSF market is likely to drop slightly in coming weeks. Prices in India and Pakistan rolled over during the week. Viscose filament yarn prices in Asia were range-bound during the week. In dissolving pulp market, the offers were firm and previous orders were mostly concluded with no fresh dynamics during the week, with trading prices for hardwood pulp and softwood pulp at US$925-950 a ton and US$1020-1030 a ton respectively.

Cotton: US futures gain on freezing weather forecast

US cotton futures gained that week on concerns about crop damage due to freezing weather forecasts in Texas. Around 250,000 bales of US cotton production are likely at risk from the freezing weather concerns in Texas. Cotton crop losses from Hurricane Harvey in major producing state like Texas were estimated at about US$100 million. In India, with cotton being sowed on 49% of the cultivation area in Telangana, the state’s agriculture department was concerned about prices decreasing in the open market this year. In Pakistan, cotton prices hit a two-month high on panic buying by millers fearing shortage of quality lint in coming weeks.The December US cotton Futures gained 132 points on the week to close at US cents 68.20 per pound. The Cotlook index jumped on the week to close at US cents 79.10 per pound. The China Cotton Index rose 1 Yuan to 15,992 Yuan a ton. In Pakistan, the KCA spot rate was up PakRs150 during the week at PakRs6,445 per maund ex-Karachi. In India, cotton prices for most specs fell INR200-300 during the week with benchmark Shankar-6 trading at INR38,300 a candy.

Spun Yarn: Prices edge down in India

Cotton yarn markets werestable in China, down in India while they rose in Pakistanin the last week of October. In China, cotton yarn prices were flat amid bearish sentiment during the week. Market saw moderate transactions, and most orders were for short-term use, indicating that producers did not hold enough confidence on market sentiment in the future. In India, cotton yarn market weakened that week in line with a decrease in cotton fibre prices. In Pakistan, cotton yarn prices climbed up following a sudden rise in cotton prices recently. Polyester spun yarn prices rolled over in China and Pakistan while they declined sharply in India during the week. In China, spun polyester yarnofferswere range-bound amid moderate sales that week. Sales volume of some individual specs was passable. In India, spun polyester offers were lowered during the week. Prices have lost INR10 per kg in the last five weeks. During the week, prices dropped 2.8% while they fell 5.4% as compared to the levels four weeks ago. In Pakistan, polyester yarn prices were generally stable.

Viscose spun yarn prices fell again in China while they were unchanged in India and Pakistan during the week. In China, spun viscose yarn market was weak that week over a fall of viscose staple fiber prices. However, given a smaller markdown compared with that of VSF, buying interest was subdued. Liquidity was sound during the week, but the dull season is expected to befall after 11 November. Prices in India were firm. In Pakistan, viscose fiber prices were not really moving, with relatively lower level of demand at the end of the season. And as a result, viscose yarn prices remained unchanged again that week. Blended yarn prices were stable to up in China and India while they were flat in Pakistan.



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