TOKYO — Asian prices of synthetic fibers used in apparel and industrial materials have dropped for eight months in a row due to cheaper raw materials and an oversupply in China.

     The Asian spot price of long polyester filament recently stood at $1.03 a kilogram, 3.7% cheaper than a month earlier and the lowest in about 14 years. Prices of polyester staple, a shorter fiber than filament, fell 3.6% to 81 cents per kilogram, the cheapest since February 2003.

     One reason for the decline is that purified terephthalic acid, the main feedstock for polyester, has followed crude oil prices lower and now costs around $560 a ton — down 30% from the recent high in May 2015.

     Another is that in China, which produces more than 70% of the world’s synthetic fibers, polyester supplies have exceeded demand by 40%. The soft market will likely persist as long as the large oversupply does. Demand has been weak since the Lunar New Year but some say will start picking up in the latter part of March as apparel producers begin making fall and winter products.

Nikkei Asian Review

05/03/2016

Quote from: “http://asia.nikkei.com/Markets/Commodities/Synthetic-fiber-prices-fall-for-eighth-straight-month“