China PFY Prices Rise on Supply Costs, Buyers Absent

China's PFY market saw an upward trend in September due to supply-side factors. Despite this, buyers remained on the sidelines throughout the month.

The increase in international crude oil costs led to a rise in feedstock prices for PTA and other related materials. This, in turn, pushed up the cost of producing PFY, prompting sellers to raise their offers in an effort to protect margins already under pressure from upstream costs.

However, this cost floor appears temporary as idled production capacity is expected to come back online, easing tightness in PTA and potentially reversing the upward trend in PFY prices.