Polyester Price Forecast in Asia - December 2012

MEG nominations for December spanned in the range of US$1,200-1,220 a ton. Sellers will be keen to liquidate early next month and the second half may see some rebounding. Purified terephthalic acid prices will tend to rise to cover the increased cost of paraxylene in the last two weeks of November and also helped by tight spot supply which will continue to lift market sentiment. Some Chinese buyers may seek spot CFR cargoes outside the country rather than procuring domestic supply.

Activity in Asian polyester filament yarn markets will be largely disperse as upstream PTA and MEG prices inch up on feedstock strength.

The tendency for polyester pricing in December appears downwards in December, with occasional peaks of recovery along the way. But the direction is more toward a sharp downturn. POYs and texture yarn as well as polyester staple fibre prices will remain down from the year ago level. Polyester textile filament prices in Asia will show a more certain direction this month although downwards, resulting from poor demand and rising stock in the textile system. Prices in China will nearly to collapse as the year come to an end, but upstream raw material system may hold prices from falling.