While March cotton prices experienced record volatility of over 25 cents in CIF Asia offering prices, polyester staple fiber prices had very limited movement. In the ex-China market in Asia, the price of 1.4/1.5 Den staple fiber prices in March averaged 138 to 142 cents per kilogram or 63.00 to 65.00 U.S. cents per pound, CIF Asia ports. These prices prevailed despite crude oil prices surging to a new record high. The oversupply of production capacity in Taiwan, South Korea and Thailand is continuing to keep pressure on prices. In doing so, it is adding further stress on global cotton consumption prospects due to its price advantage. For most of the month, polyester staple fiber was available at 15 to 20 U.S. cents per pound below top-grade cotton.

In China´s domestic market, the average March price of polyester staple fiber was 11,600 yuan per ton or approximately 74.53 U.S. cents per pound. Cotton has traded near 14,000 or more yuan per ton, landed the mill. Again, overcapacity in China is keeping pressure on local polyester staple fiber prices. Only in the European and U.S. markets are polyester staple fiber prices at levels considered high prices. Consumption in these markets is dominated by uses other than in apparel, reducing the impact of the prices on cotton use.

In the U.S., the average March price of 1.2/1.5 Den staple fiber is 86.00 to 89.00 U.S. cents per pound; while in Europe, the average price is 224 to 260 U.S. cents per pound kilogram or 101.60 to 117.94 U.S. cents per pound.

Source：Globecotnews