India’s polyester chain strengthened as Strait of Hormuz tensions lifted crude oil and petrochemical feedstock costs.
PTA, PSF and polyester yarn prices rose, while China’s PTA and MEG remained volatile.
Indian buyers stayed cautious and purchased largely on a need basis, as uncertainty persisted over the sustainability of recent price hikes.
Polyester filament yarn manufacturers announced multiple price increases during the week. A prominent manufacturer raised partially oriented yarn (POY) prices by ₹2 per kg across all deniers and lustres on July 22, taking 126/34 semi-dull (SD) to ₹120 (~$1.25) per kg and 120/72 SD to ₹121 (~$1.26) per kg. Another ₹2 per kg increase was announced on July 23, lifting the respective prices to ₹122 (~$1.27) and ₹123 (~$1.28) per kg.
Another major manufacturer increased fully drawn yarn (FDY) prices by ₹5 per kg across bright and semi-dull products with effect from July 23. RIL’s POY and polyester textured yarn (PTY) prices were also increased by ₹3 per kg from the same date, while its fine-denier product was priced at ₹121 (~$1.26) per kg.
In China, polyester feedstock prices remained volatile. CFR China PTA was assessed at $820 per tonne on July 20, before falling to $805 on July 21. It subsequently climbed to $825 on July 22, and $840 on July 23, before retreating by $20 to $820 per tonne on July 24. MEG moved from $610 per tonne on July 20 to $602 on July 21, before rising successively to $609, $615 and $631 per tonne over the following three sessions.
The polyester market’s strength came amid heightened volatility in global energy and petrochemical markets linked to tensions around the Strait of Hormuz, a critical route for international crude oil and petroleum product shipments. Concerns surrounding energy and feedstock flows increased cost pressure across the Asian petrochemical chain.
The impact was particularly visible in naphtha, a key upstream petrochemical feedstock. CFR Far East Asia naphtha prices surged by $40 per tonne to $851-853 per tonne on July 20. The sharp increase strengthened the cost base for downstream petrochemicals and added upward pressure on polyester raw materials.
Market participants said higher upstream costs prompted Indian producers to revise polyester raw material and yarn prices upwards. However, downstream textile buyers remained cautious, with purchases largely need-based amid uncertainty over the sustainability of the sharp price increases.
Polyester prices are expected to remain sensitive to crude oil movements and developments around the Strait of Hormuz. Continued disruption or heightened risks to energy flows could keep feedstock costs elevated, while an easing of geopolitical tensions and crude oil prices could bring some correction across the polyester value chain.
Fibre2Fashion News Desk (KUL)
