China Polyester Market Snapshot (Sep 2, 2010)

PTA

PTA futures market climbed up today and the spot market followed up. The talked prices fot Taiwan origin cargoes moved up to $902-904/mt. One deal of Korea origin bonded goods was done at $889/mt. In RMB market, talked prices were at 7370-7380yuan/mt.

PTA Futures

With spiking crude oil futures, today Jan PTA futures contract opened at 7816 and closed at 7744，126 up from yesterday. Open interests increased 16816 to 273614 lots. Turnover totaled 654356 lots.

MEG

MEG market firmed slightly in RMB market in the morning weakened in the afternoon. The trading intention slid with some deals done at 6530yuan/mt and higher at 6550yuan/mt. In USD market, several deals were concluded at $810/mt by traders.

PET

PET bottle chip market was basically stable on Thursday. In RMB market, water bottle chips were offered at 9,500-9,600yuan/mt and talked at 9,400-9,500yuan/mt. In USD market, traded price was at $1160-1170 FOB China.

PET fiber chip market kept consolidating. Market sentiment became more stable than yesterday. Fine SD chips in Xiaoshan/Shaoxing were talked at 9,000-9,050yuan/mt by cash. Moderate amount of transactions were done at this level.

PFY

PFY market maintained stable but a few plants cut POY and FDY down 50-150yuan/mt. Discounts were widely available and producers performed actively to sell goods. PFY sales ratio lingered at 60-80% with higher ones at 100% but lower ones at only 30-40%. Polyester filament yarn market may maintain a weak performance with small shivers in the short term.

PSF

Propped up by PTA futures hikes, PSF low price was canceled and prevailing price was pegged at 9700yuan/mt, higher at 9750yuan/mt, with moderate sales.Backed by firm polyester feedstock spot market, PSF plants still held zero inventory and its price is suppose to stabilize further.

Prices