SINGAPORE (ICIS)--Offers for China-origin polyester staple fibre (PSF) 1.4 Denier (D) cargoes increased due to low inventory levels among sellers amid a seasonal peak in demand.
Offers were heard at around $1.17/kg FOB (free on board) China, up from $1.15/kg from a week ago.
Inventory levels have been maintained at relatively low levels because PSF sales in China’s domestic market have been good, a China-based seller said.
Demand for PSF is seasonally strong at around the September to October period, market participants said, prompting Chinese producers to raise their export offers.
However, there might be some resistance to higher prices in the export market in view of volatile prices of upstream paraxylene (PX), purified terepthalic acid (PTA) and monoethylene glycol (MEG) markets, some industry players said.
Pictured above: Polyester cloth (Photographer: Alex Segre/REX/Shutterstock)