Yarn Updates (From 16th July to 21st July 2018)
1) PFY prices remained stable to partly higher this morning in China markets on Monday.
2) China PFY prices remained stable, despite weak upstream, after the stable to partly higher beginning.
Despite the weakness of crude oil and PTA futures, local PFY offers in Jiangsu and Zhejiang remained stable on support of low inventory. Downstream mills mainly covered shorts, holding wait-and-see stance towards market future.
3) In the midweek, China PFY prices remained stable to higher.
Crude oil and PTA futures markets were in narrow fluctuation. PSF market sentiment turned stable to soft and offers and discussions edged down.
4) In the end of the week, PFY prices mostly moved up.
As both crude oil and PTA futures were firm, local PFY producers in Jiangsu and Zhejiang raised offers by 50-100 yuan/ton. Downstream mills slightly increased procurement, as a result.
5) China nylon yarn market earned good profits in the beginning.
Demand from end sectors was tepid but feedstock bright chip market was firm. Prices tended to rise given profit losses.
6) After the good profits in the beginning, China nylon yarn market appeared passable.
Cost pressure was high, while demand in terminal sector was thin. Rates were at 80% amid break-even production.
7) China nylon yarn market appeared firm in the midweek.
The market was passable given high cost and modest rigid demand. Profits were decent.
8) China nylon yarn market again became passable in the end.