Crude oil prices gained in the second last week of September despite worries about the wearing US economy and upward pressure from a weakening dollar. However, positive news in several categories of durable goods orders helped boost oil prices nearly 2% on Friday. The U S Commerce Department reported decline of durable goods orders in August, but largely due to a drop in orders of transportation equipment while most other categories showed strong gains. The relatively strong showing for capital goods indicated the corporations were investing for further growth. The midweek inventory report was though bearish for oil prices as it showed a gain of 1 million barrels when most expected a decline of 1.5 million barrels. The dollar was under pressure most of the week as the prospect of further quantitative easing from the Federal Reserve pushed the currency down against major currencies. A decline of the dollar in foreign exchange markets generally means an increase in oil prices, which are denominated in dollars. The benchmark West Texas Intermediate October futures contract settled at US$ 76.49 a barrel gaining US$ 2.83 over last week while in London, the Brent crude, ahead of US futures, settled at US$ 78.87 a barrel on the ICE futures exchange up US$ 1.44 from last week.
Polyester Chain: PSF and PFY prices jumps
Ethylene prices were pushed up in Asian market due to limited availability and modest demand. Taking the Asian clue prices in Europe and USA trended upwards. The availability is likely to tighten further as Formosa Petrochemical Corp of Taiwan has plans to shut its No.2 plant from 5th October for scheduled maintenance for 40 to 45 days. The restart of its No: 1 plant, which was in July after a fire, have been delayed slightly by rains. Paraxylene prices were supported by bullish sentiments for the fourth quarter this week. MEG prices were raised following the surge in ethylene prices. Most sellers held goods tight and with optimistic sentiment about future market strengthening. Asian PTA spot market also showed stable-to-firm trend with prices inching up. Polyester chips prices gained in China on support of a strong and firm PTA and MEG markets. Reportedly, trading sentiment of semi dull chips market was favorable and prices moved up further amidst sellers holding on tightly. Polyester filament yarn markets in Asia continued to remain firm, with prices increasing significantly in China after a three-day Mid-autumn Festival. The upward momentum in polyester staple fibre prices continued relentlessly particularly in China and Pakistan.
Nylon Chain: Steady trend
Benzene market in Asia was stable although refineries raised prices to stimulate the market. However, there was marginal response and downstream segment showed low buying interest. In USA, price ideas increased for US September spot benzene as customers return to the market amid declining production levels from producers. Asian caprolactum markets were quiet as activities were low due to Mid-Autumn Festival holiday in China. Offers were limited as spot market was quiet, with few negotiations heard. Downstream segment was reluctant to accept the new offers. Nylon chips markets in Asia were also calm and prices mostly rolled over previous week’s numbers. The markets opined that demand for nylon 6 textile-grade chips in Asia may not pick up strongly in October, when peak season sets in, as their current high prices would discourage buyers from procuring supply. Nylon filament yarn prices were steady as China was on a three day Mid Autumn holiday.
Acrylic Chain: Prices stable
Propylene was cheaper in Asia mainly due to limited buying interest and r