Polyester Prices Are Rising In The Textile Market

The prices of man-made fibers intermediates were largely governed by the volatile crude oil values in 2006. Oil prices rose significantly by 18-20% throughout the year. This was over and above the 36-40% increase recorded in 2005.

 The surge is related to geo-political issues and unrest in the middle-east, supply disruption in Nigeria and speculation over sanctions on Iran who's pursuing a nuclear programme despite global opposition.

Naphtha, the essential feedstock for several fiber intermediates, mirrored the movement of crude oil prices. They rose by 15% during 2006 in Asia and Europe. In Asia naphtha averaged US$582 a ton. 

This rise was clearly reflected in prices of olefins and jute carpet padding manufacturer aromatics that have been occasionally in short supply. Prices of fiber intermediate raw material via ethylene, Paraxylene and propylene rose in tandem with energy prices. During the year prices of ethylene rose 24% and Paraxylene by 25%.

The significant rise in feedstock prices had a direct effect the downstream polyester intermediates in Asia however not in Europe. Prices in the polyester segment rose significantly. PTA prices rose 95. in Asia. 

MEG prices were up 3%. This led to changes in the polyester fibers and yarns segment. However, price rise was limited as a result of weak demand from consumers. PSF and PFY prices rose by 5% in Asia and by 3% in Europe.

They average US$1.24 a kg of PSF in Asia and Euro 1.45 a kg in Europe. The rise was significant in the 3rd quarter of 2006 both in Europe and Asia.


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