China’s polyester producers returned from the national holidays in a less than festive mood as filament fiber prices continued to fall, depressed by relatively weak demand from yarn texturizers and filament fabric mills.
POY (partially oriented yarn) prices averaged around $1.70 per lb. for the week ending October 18, at or near recent levels. FDY (fully drawn yarn) prices continued to drop, and ended at around $1.73 in the period.
Sales to capacity remains low, ranging from 50-60%, indicating inventories could start building to levels that would further weaken prices.
Prices for polyester intermediates have also been relatively soft due to declines in crude oil prices. This could also result in further deterioration of yarn pricing.