PSF prices at 6-month high

Ethylene markets in Asia were quite as most Western and European markets were on holidays. In US steam cracker margins climbed on higher spot prices and chemical plant outages. Paraxylene contract price for January was to be settled late week end, though players expect it to be at US$1,600 a ton or above. In Europe, activity in the paraxylene spot market remained subdued while spot price inched up over the week. In US, spot paraxylene was lower as feedstock mixed xylenes fell similarly. Mono ethylene glycol prices first declined early in the week in Asian markets only to recover back later ending the week a little higher from last week. However, producers were reluctant to sell at low prices due to limited availabilities of qualified products in the market.

Purified terephthalic acid spot prices in Asia continued to climb this week in what can be described as calm market in the first half of the week. Overall trading sentiment was relatively quiet ahead of Christmas holiday. Polyester chip producers pegged offers firm due to cost-push factors and strong intention to push for a price hike. Semi dull PET chip market in Asian remained in a northbound this week reversing the insipid transaction of last week. Polyester filament yarn markets in Asia saw passable trading due to continued rise is raw material prices. In India, overall PFY market rolled over this week although prices were hiked by some texturised yarn producers, but the upward momentum was weak. In Pakistan, the overall PFY market was on a cautious note, and major producers retaining their offers. Polyester staple markets gained, with prices reaching a six-month high in China. Sentiment was stable at early week, and prices later jumped significantly on steep rises of futures and oil prices.