The Asian polyester market has stalled since early August as weak sales hold back further price rises, with overall demand expected to pick up during the traditional peak season in September, The company said yesterday.

In the week ending August 25, spot prices for 150D polyester threads in The Asian market were between US $0.78 and US $0.85 / kg (FOB, Northeast Asia), and prices have remained stable since August 4, according to Anxun data. In the past month, the price of 1.4d polyester staple has hovered between us $0.7 and US $0.73 / kg. To meet basic demand, many downstream processors in the Asian polyester market have bought only small quantities of goods. Meanwhile, Asia's leading exporters of polyester are reluctant to cut prices as margins erode.

Prices of ethylene glycol, an ingredient in polyester production, rose nearly 4 per cent in Asia in August, also squeezing margins. "We are watching and can't cut any more because the profit is breaking even, but weak sales also prevent us from raising prices, so we are in a quandary," said one leading polyester maker in South-east Asia.

Many in the market expect September and October to be the traditional peak months for polyester demand, with more inventory restocking expected next month. Demand growth for polyester this year is expected to be lower than the previous year due to the epidemic, sources said.