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Polyester Filament Yarn Market Weekly(Dec 13-17, 2010)

2010-12-17
CCF Price
Description (Yuan/mt) Dec 6-10 Dec 13-17 Trend
Avg Low High Avg
DTY150D/48F 14,340 14,200 14,300 14,240
POY150D/48F 12,590 12,100 12,300 12,210
FDY68D/24F 17,360 16,200 17,100 16,740
FDY150D/96F 12,750 12,500 12,500 12,500
CCF Index
  3-Dec 10-Dec 17-Dec Trend
CCF Polyester Polymerization Rate Index 84.0 84.0 84.0
CCF FDY Inventory Index (day) 13.0 13.8 16.5
CCF DTY Inventory Index (day) 16.2 16.7 19.4
CCF POY Inventory Index (day) 12.6 13.4 15.5
CCF E.China Loom O/R Index 65.0 65.0 62.0
Market Roundup
PFY market kept a downtrend this week and prices declined further by 500yuan/mt. Downstream textile plants kept a wait-and-see attitude and PFY sales ratio was low at 60-70%. The CCF Price Index of POY, DTY and FDY150D were pegged at 12100, 14200 and 12500yuan/mt.

The sales ratio in big PFY plants lingered around 70% and product inventory increased by 1-2 days. According to statistics, inventory level of FDY, POY and DTY in Zhejiang and Jiangsu were at 14-16, 14-16 and 18-20 days respectively. Some Shaoxing plants cut production under power ratio and Polyester Polymerization Index inched down to 82%. O/R in major twisting plants (Taicang, Changshu, Changxing, Cixi, Xiaoshan and Shaoxing, etc.) was at 30-40%. Run rates in chip-spun plants were at 70% while O/R in Jiangsu/Zhejiang looms at down to 62% under unfavorable offtake. Feedstock inventory in downstream plants ruled stable at 7 days.

Fujian PFY market kept weak though polyester raw materials performed well recently. PFY prices ticked down by 200-400yuan/mt with inventory up by 1-2 days. Average sales ratio remained low at 50-70% and plants kept focusing on reducing inventory. downstream plants purchased feedstock periodically with a cautious mood.
Market Outlook
New business in downstream twisting plants, warp weaving plants, circular knitting plants and weavers kept shrinking due to PFY price fluctuation. Run rates in downstream textile bases remained low. Operating rates of water jet looms in Shengze decreased further to 55%, with 50% in the adjacent places; O/R of warp knitting plants in Wujiang, Haining was 60%; While O/R in textile plants in Xiaoshan/Shaoxing was at 60%; O/R of circular/warp knitting plants in Fujian and Guangdong were at 40% due to low profits. Daily turnover in China Textile City averagely was about 5.22 mln meters, down 0.89 mln or 14.6% from 6.11mln meters in the correspondent period of last year.

After sharp price decrease, some foreign demand arrived in Changshu, Changxing, etc. and trading volume of some popular varieties enlarged. Though raw materials rebounded recently, high costs and reluctant downstream buyers restricted PFY market performance. PFY inventory kept building and plants focused on sales promotion. Downstream textile plants may purchase certain amount for cover next week and PFY prices will keep shivering within a small range.


 

 

source:CCFGroup.com

 
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