Sluggish Demand and Oversupply Challenges Polyester Staple Fiber Market in the US
- 13-Jun-2023 3:28 PM
- Journalist: Shiba Teramoto
In recent weeks, the demand for Polyester Staple Fiber in the US market has experienced a period of sluggishness, signalling a continuation of the downtrend that began earlier this month. Industry experts and analysts attribute this slowdown primarily to a saturated demand fundamental, resulting in ample yarn inventories in mills across the country. Additionally, ChemAnalyst reports suggest a drop in Polyester Staple Fiber price by 1% at the start of June 2023.
The demand for fibre, yarns, and spun yarns has been significantly impacted, with inquiries for Polyester Staple Fiber remaining low from the apparel industries. The oversupply situation has been due to the reduction in purchasing intentions across the downstream textile sector. However, spinners are also considering scaling back their Polyester Staple Fiber operating rates due to the high availability of materials in warehouses. Adding to the prevailing market conditions, the price of key raw materials, such as Purified Terephthalic Acid (PTA) and Monoethylene Glycol (MEG), has been experiencing downward pressure due to the lowering of oil prices. Despite these factors, the US economy is also showing signs of stability, with the probability of a recession in the coming year decreasing.
Adding to the industry's challenges are the economic conditions in the United States. Despite attempts to stimulate economic growth, the country faces various obstacles such as inflationary pressures, trade disputes, and uncertainties surrounding fiscal policies. Since the collapse of the two prominent banks such as Silicon Valley bank followed by the Signature Bank in March induced several uncertainties amongst the consumers , whereas the proportional rise in the outflow of the deposits amplified stress consecutively for the fourth quarter. These factors have had a direct impact on consumer confidence and spending patterns, particularly in sectors heavily reliant on discretionary purchases, such as textiles and apparel. Consequently, the Polyester Staple Fiber industry has felt the repercussions of a weakened economy in the United States.
Although some brands had initially ordered summer wear Polyester items at the start of June 2023, several Polyester Staple Fiber manufacturers even expanded their production capacities in anticipation of robust demand growth, which unfortunately did not materialize. However, there might be some sporadic replenishment of autumn and winter fabrics, as players in the industry may restock in the coming weeks.
According to the ChemAnalyst Forecast, the price of Polyester Staple Fiber is expected to continue its recent downward trend, influenced by declining feedstock costs. However, fluctuations in the crude oil market should be carefully considered when determining the final prices of Polyester Staple Fiber for the forthcoming week.