US floods may boost Asian fibre prices

19 June 2008 10:01  [Source: ICIS news]

BANGKOK (ICIS news)--The worst floods to hit the US Midwest in 15 years could give Asian fibre values a boost by August due to snug cotton supply, industry sources said on the sidelines of the 12th Asian Chlor-alkali Conference in Bangkok on Thursday.

Cotton, the natural substitute for polyester fibres, is grown in midwestern US states such as Mississippi and the heavy rain which began two weeks ago has ruined many farmers’ crops for this year.

“Fibre prices in Asia have been taking a beating so far due to fewer export orders from the US and Europe. The floods could be a blessing in disguise because the cotton shortage means higher cotton prices which will make fibres a viable alternative for downstream end-users,” a trader from southeast Asia said.

“Cotton is normally harvested near the end of July while production for the year end peak season normally begins in August so polyester fibre prices could receive a boost then,” added the source.

Polyester staple fibre (PSF) 1.4 denier prices were assessed firmer by 3 cents (€0.02) per kg at $1.53-1.57/kg FOB (free on board) northeast (NE) Asia for the week to 17 June on firmer feedstock values, based on global chemical markets intelligence service ICIS pricing.

Polyester fibres are used to make stuffing for comforters, winter jackets and cushions.

The two-day conference, organised by ICIS and Tecnon, will end on Friday.

($1 = €0.64)

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By: Hong Chou Hui
+65 6780 4359

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