Yarn Updates (From 20th August to 29th August 2018)
1) In last week, spun rayon yarn offers climbed in China markets due to firmer VSF prices.
2) China nylon yarn market kept good profits in the week.
Feedstock market was firm, adding to cost pressure, while downstream buying sentiment was tepid.
3) China nylon-66 chip prices remained firm due to tight supply in the week.
4) China PFY prices have shown a rise on surging PTA futures in the beginning of the week.
Given surging PTA futures, local PFY offers in Jiangsu and Zhejiang mostly climbed by 200-400 yuan/ton. Downstream mills followed up somewhat, but transaction volume was moderate, citing low inventory at PFY producers.
5) Seeing mild fluctuation of PTA futures and a slowdown in downstream procurement, local PFY offers in Jiangsu and Zhejiang were stable to higher in the midweek.
Downstream mills purchased as needed, while actual trading volume would not be high, due to low inventory at PFY producers.
6) China PFY prices showed rangebound in the end of the week.
Given weak crude oil and a slump of PTA futures, local PFY offers in Jiangsu and Zhejiang were stable, with few price hikes heard. Downstream mills digested stocks mainly, holding heavy wait-and-see stance.