Fiber Updates (From 20th August to 29th August 2018)
1) China PSF market showed the upward momentum in the beginning of the week.
Boosted by strong PTA futures, PSF makers hiked offers by 300-600 yuan/ton.
2) In the midweek, China PSF market remained stable to higher.
On range-bound PTA futures, PSF prices were stable to higher and some suppliers hiked low-end values by 100 yuan/ton.
In Fujian, PSF makers hiked offers further and market sentiment appeared to be stable to firm.
3) China PSF market moved sideways in the end of the week.
On range-bound PTA futures, PSF market was covered by wait-and-see sentiment. PSF market in Shandong and Hebei kept stable.
4) China VSF prices largely remained stable in the beginning and became stable to firm in the middle of the week with some producers tend to raise offers.
5) In the end, China VSF market again welcomed a round of price hikes.
6) Fine grades of cotton remained in demand amid firm physical prices past week in Pakistan Markets.
7) The Cotton Corporation of India (CCI) has signed an MoU with the Central Warehousing Corporation to use its warehouses for storage.
The Cotton Corporation would need space in 500 to 600 warehouses.
8) China PET chip market inched up further in the week.
9) Approved varieties of cotton seed are provided by Pakistan government with 50% subsidized rate and over PKR 14 million are being spent for provision of agricultural machinery to cotton growers.
10) China cotton spot market remained stable in the week and producers showed aggression in selling. It was reported that state-reserved cotton auctioned before had been almost used out at traders.
11) Foreign cotton prices have risen in China in the week.
12) In China domestic AF market, upstream feedstock was settled high, translating into higher cost month on month for AF products, and in turn AF prices may not easily fall in the short run, despite moderate demand of the moment.