Fluctuating crude oil, Supply disruption and the covid-19 outbreak to influence the market of Polyester Partially Oriented Yarn
- 25-Apr-2022 7:13 PM
- Journalist: Francis Stokes
This week, the polyester market rebounded on the back of rising feedstock Purified Terephthalic acid and Mono-Ethylene Glycol market. Due to the rising load from feed, the market for Polyester Partially Oriented Yarn also jumped by 2% in China and settled from USD 1230/MT to USD 1268/MT. In addition, tight supply amidst the Russia-Ukraine war has further havocked the pricing trend of all crude derivative products after the EU ban on Russian oil import.
The feedstock PTA fluctuated and rose this week along with the oscillating crude oil price. As of April 21, 2022 the WTI crude oil price was USD 103.79/barrel, whereas Brent crude oil price reached USD 108.33/barrel. Later, hampered shipping, followed by the tight supply due to the Russian war on Ukraine and the worsening epidemic situation in China, forced the manufacturers to reduce their operating load by 70%. Meanwhile, Ningbo Yisheng, Yisheng Dalian, Yisheng Hainan, and others have planned a shutdown of their units on the maintenance program.
Furthermore, Jiangsu and Zhejiang loom reduced operating rates to 54% because of the low inquiries from downstream textile industries. The widespread problems in logistics have further led to the production disruption in multiple factories. Later, the supply chain situation in major ports of China has impacted the importing of feedstock Purified Terephthalic acid and the product polyester to its overseas market.
In addition, researchers in Taiwan have developed a method of producing Polyester with Collagen from Fish Scales. This development led to improved strength, hydrophilicity, and wrinkles-free textile, along with the usage of the Bio-waste recycling process, which aids our economy.
As a result of the growth in the textile sector, the Indian government has revised the tax on manmade fibre, yarn, and fabrics. The feedstock MEG and PTA taxes were revisited and settled at 18% each, whereas the finished product, Polyester Partially Oriented Yarn (POY), has a 12 percent tax.
According to the ChemAnalyst analysis ” the current situation in the global market due to the Russia-Ukraine war and the ban on Russian oil import may hamper the price trend of its derivative products. Inline, the worsening situation of Covid in China has further disrupted the supply of Polyester Partially Oriented Yarn (POY), to the international market.