For the Quarter Ending March 2025
North America
In Q1 2025, the North American fiber market exhibited a generally bearish trend, with prices for Polyester Staple Fiber (PSF), Viscose Staple Fiber (VSF), and Polyester Filament Yarn (PFY) declining by 0.8%, 1.45%, and 1.02%, respectively. Early in the quarter, fiber prices experienced upward momentum driven by robust demand from downstream sectors like textiles and home furnishings. However, ample inventories, weakened consumer sentiment, and subdued textile sector activity reversed this trend by March, leading to a decline in prices. Factors like easing freight rates and tariff uncertainties further dampened procurement activity, reinforcing the bearish sentiment across the sector.
Conversely, the chemical markets displayed resilience. Adipic Acid and Caprolactam prices rose by 2.54% and 10.12%, respectively, supported by strong demand from the automotive and textile sectors. Rising feedstock costs, policy-driven uncertainties, and preemptive buying amid tariff fears buoyed prices throughout the quarter. Caprolactam, in particular, benefited from a rebound in U.S. manufacturing activity and robust vehicle sales, closing at USD 2,086/MT DEL Houston.
The quarter encapsulated a mixed performance across fibers and chemicals, with supply chain stabilization post-winter disruptions contrasting the ongoing challenges of weak downstream demand and geopolitical tensions.
Europe
The European market experienced mixed trends across key commodities in Q1 2025, reflecting varied dynamics in supply, demand, and logistics. The Polyester Staple Fiber (PSF) market declined by 2.86%, driven by inventory oversupply, muted downstream demand, and lower freight costs. Despite an initial price surge due to logistical disruptions, ample supply and cautious procurement in March reinforced the bearish trend.
Conversely, the Viscose Staple Fiber (VSF) market exhibited a 3.11% rise, supported by robust demand from the textile and automotive sectors during January and February. Limited regional inventories and persistent logistical constraints sustained the bullish trajectory early in the quarter. However, oversupply and weaker global textile exports moderated the gains by late March. The Polyester Filament Yarn (PFY) market recorded a 1.89% decline amid intensified competitive pressure from Asian imports. Despite early stockpiling ahead of the Lunar New Year and higher feedstock costs mid-quarter, subdued textile demand and ample post-holiday exports from Asia weighed on prices. The Adipic Acid market faced a sharp 8.56% drop, reflecting weak automotive demand and supply chain disruptions, although mid-quarter production issues temporarily tempered the decline. Meanwhile, the Caprolactam (CPL) market rose by 1.72%, bolstered by rising feedstock costs, production halts at major facilities, and persistent logistical challenges.
APAC
In Q1 2025, the Asia-Pacific fiber and chemical markets saw mixed trends with mostly weak pricing. Polyester Staple Fiber (PSF) prices fell by 3.24% as demand stayed low and supply increased after maintenance shutdowns ended. Although prices rose in early January due to higher feedstock costs and holiday stocking, the market turned weak later due to slow buying and oversupply. Viscose Staple Fiber (VSF) showed a small price increase of 0.62%, thanks to strong buying early in the quarter and stable production. However, prices dropped in March as demand slowed and inventories piled up. Polyester Filament Yarn (PFY) increased slightly by 0.54%. A supply crunch and strong buying before the Lunar New Year helped early prices, but by quarter-end, weak export demand and higher stocks limited further gains. Non-woven materials prices dropped by 1.81%, reflecting reduced demand and cautious market activity. Adipic Acid and Caprolactam both saw declines of 2.93% and 3.64% respectively. Lower feedstock costs and poor demand from textile and auto sectors weighed heavily on these chemicals. Overall, while a few segments saw short-term support, most of the market struggled due to weak demand, high inventory, and trade uncertainties.
For the Quarter Ending December 2024
North America
The North American textile industry faced persistent challenges in Q4 2024 due to weak demand, economic uncertainties, and external pressures such as inflation and shifting consumer spending patterns. The Polyester Staple Fiber (PSF) market saw a 5.7% price drop during the quarter, driven by low-cost imports from Asia and reduced feedstock costs like PTA, compounded by the ILA Port Strike and high freight charges that discouraged stockpiling.
Viscose Staple Fiber (VSF) prices declined by 5.4% during the quarter as weak apparel demand and inflationary pressures persisted, while an influx of cheap imports and high inventory levels further pressured the market. The Viscose Filament Yarn (VFY) market remained bearish as subdued demand from the apparel sector and stable domestic availability restrained prices, while cheap imports and weak downstream demand contributed to continuous price declines. Polypropylene Filament Yarn (PPFY) faced limited downstream demand due to inflation and competitive pricing from Asian imports, alongside sufficient domestic availability that kept prices under pressure.
Adipic Acid prices were stable with slight improvements, supported by seasonal demand from the holiday-driven textile sector, though weak activity and logistical challenges tempered gains. Caprolactam saw a marginal price decline during the quarter as subdued textile demand and hurricane-related supply chain disruptions restrained market performance, alongside cautious procurement amid political uncertainty.
APAC
During Q4 2024, the Asian Pacific region witnessed a decline across key products linked to the textile and apparel sectors, largely influenced by weak demand, oversupply, and subdued global economic conditions. Polyester Staple Fiber (PSF) faced bearish market trends, driven by high inventories and weak domestic and overseas demand, particularly from India, while fluctuating feedstock dynamics added pressure. Similarly, the Viscose Staple Fiber (VSF) market saw persistent declines due to oversupply and limited downstream yarn purchasing activity, as the textile sector grappled with seasonal slowdowns and cautious procurement. Caprolactam experienced weak momentum, with limited demand from textiles and other related sectors, compounded by logistical disruptions and destocking pressures. Adipic Acid was impacted by a global shift away from synthetic fibers and weaker feedstock dynamics, while Typhoon Kong-rey further delayed supply chains, keeping demand tepid. The Viscose Filament Yarn (VFY) market showed mixed trends; strong seasonal demand from fashion and apparel in November was offset by subdued activity in December due to destocking. Polypropylene Filament Yarn (PPFY) and Polyester Filament Yarn (PFY) markets experienced temporary demand surges driven by festive season requirements and thermal fabric needs, but overall trends remained negative due to oversupply and cautious downstream activities.
Europe
The European fiber and polymer markets experienced a challenging Q4 2024, marked by subdued demand, oversupply, and economic uncertainties, which notably impacted the textile and apparel sectors. Weak consumer sentiment and cautious spending patterns reduced procurement from the textile industry, while oversupply and competitive imports, particularly from Asia, further pressured markets. Polyester Staple Fiber (PSF) saw weak demand from textiles, exacerbated by high inventories and falling feedstock prices. Similarly, Viscose Staple Fiber (VSF) and Viscose Filament Yarn (VFY) faced muted demand from both apparel and paper industries, despite favorable energy costs. Polyester Filament Yarn (PFY) and Polypropylene Filament Yarn (PPFY) markets struggled with ample supply and limited procurement by downstream buyers, who focused on immediate needs while leveraging discounted offers. Caprolactam and Adipic Acid markets, closely tied to automotive and textile applications, grappled with reduced consumption, as sustainability trends and economic pressures dampened demand. Regulatory changes and inflationary concerns added to the cautious market environment, while logistical challenges like port congestion in Hamburg hindered supply chain efficiency. Throughout Q4, the textile and apparel sectors in Europe remained sluggish, driven by weak consumer sentiment, seasonal destocking, and limited recovery in key end-use markets, reflecting the broader economic uncertainties.
