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China - Polyester prices remain bullish [ 29 Jun, 2009]
In the Mainland Chinese fiber and yarn market last week, polyester remained in a bullish condition.
The market situation on June 26th was that polyester DTY (167T/48F) was quoted at 10,250 yuan/ton, or 150 yuan higher than on June 19th. Polyester staple fiber (1.56T/38 mm) remained unchanged at 8,650 yuan.
After the movement of goods became active and prices were raised due to increases in raw material costs, polyester prices became bearish from around the middle of April. The prices hit bottom in the middle of June, and prices were bullish last week as well.
Until the middle of April, the prices of raw materials for polyester had been increasing rapidly, and the anticipation of higher prices made the movement of goods active, which resulted in reducing stocks in the production stage. Adjustments began in the middle of April, and polyester became bullish again from June 15th.
As a result of the tight supply-demand situation for paraxylene, PTA had been in a bullish condition. But because a number of plants in China are newly being commissioned next month, the market has recently been bearish, and June prices are about 5% lower than in May.
Meanwhile, MEG is supported by high oil prices, and its prices are about 10% higher.
The prices for items other than polyester showed no fluctuation last week.
Source: Asian Textile
Pakistan - PSF makers seek rise in customs duty [ 23 Jun, 2009]
Domestic polyester staple fibre manufacturers have sought an upward revision of the customs duty on import of the finished product from 4.5 to eight per cent to protect the indigenous industry.
ICI Pakistan Limited, Pakistan Synthetics Limited, Ibrahim Fibres Limited and Rupali Polyester Limited approached the National Tariff Commission for reviewing the duty on finished products.
The tariff commission would hold a public hearing on the issue on July 9.
The NTC has invited comments, suggestions from relevant stakeholders within 15 days.
In the budget 2008-09, the rate of customs duty on import of PSF was reduced from 6.5 per cent to 4.5 per cent in spite of the fact that textile and industries and production ministries and the commission recommended increase in tariff of PSF from 6.5 per cent to 8 per cent.
This change in duty structure was highly shocking and perplexing as PSF was singled out in the entire value chain of polyester industry.
The domestic PSF industry accounts for import substitution of approximately $225 million.
The domestic PSF industry in recent years has been going through a crisis threatening its survival primarily due to the ever increasing cost of doing business in Pakistan compared to other regional manufacturers.
The export surplus in the region may potentially lower prices of PSF imported from the regional manufacturers of Korea, Thailand, Indonesia and recently China.
Domestic consumption of PSF as per cent of total fibre consumption is close to global average of 17 per cent due to high competitive prices, reduction in working capital requirement, in time deliveries and customised products, etc. offered by the domestic PSF manufacturers. According to the industry, rapid reduction in duty on import of PSF in the past reduced capacity utilization of PSF industry from 85 per cent in 2003 to 53 per cent in 2009.
Operating losses of the PSF industry increased over time and the situation may lead to closure of this strategically critical industry, said the industry.
Source: Dawn
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