Early May 2024 Witnesses Stable Price Trend in Global Polyester Staple Fibre (PSF) Market
Early May 2024 Witnesses Stable Price Trend in Global Polyester Staple Fibre (PSF) Market

Early May 2024 Witnesses Stable Price Trend in Global Polyester Staple Fibre (PSF) Market

  • 15-May-2024 5:32 PM
  • Journalist: Jung Hoon

During the first week of May 2024, the global Polyester Staple Fiber (PSF) market saw stable prices, with no significant changes. This stability was influenced by factors affecting both upstream and downstream in the supply chain.

In the US market, PSF prices remained unchanged from the previous month, with a minor fluctuation at the beginning of the previous month. Reduced consumption during this period led traders to decrease import capacity. Another contributing factor to this stability was the eased costs of feedstock in exporting countries. PSF prices had been stable for the past three weeks due to decreased demand from downstream industries. During this period, the prices of feedstock in the US market remained weak, decreasing by 2.2%, mainly due to a weak crude oil market and high US crude oil inventory levels.

In the European market, PSF prices remained stable, especially in Germany, at USD 1411/MT FD Hamburg. Reduced demand from downstream home textile industries and the availability of inexpensive imports from the international market contributed to this stability. PSF prices had decreased in the second week of the previous month and remained steady since then.

In the Chinese market, PSF prices also remained steady during the initial week of May 2024. This stability was attributed to a reduction in the prices of PSF feedstock. Prices for Mono Ethylene Glycol decreased by approximately 0.7%, and Purified Terephthalic Acid prices saw a decline of around 3.9%. Procurement enthusiasm downstream was moderate, resulting in a light market transaction atmosphere with stable transaction prices.

Meanwhile, PSF inventory levels at factories continued to rise, putting pressure on margins due to insufficient order volumes and weakened purchasing enthusiasm. Additionally, over the May Day holiday, international crude oil prices experienced a significant decline, with Brent crude oil decreasing by 5.95% and WTI crude oil by 6.85%, reaching nearly two-month lows. This decline was mainly attributed to a substantial increase in US inventory and expectations of a ceasefire in the Middle East, easing geopolitical tensions. Furthermore, according to the latest figures from the US Department of Commerce's Office of Textiles and Apparel (OTEXA), there was a notable 17.68% decrease in apparel exports to the US market, amounting to USD 1.75 billion in the first quarter of fiscal year 2024. Concurrently, the combined shipments of textiles and apparel experienced a similar decline of 17.37% to USD 1.81 billion during this period, indicating a slowdown in the US textile sector during the initial quarter. This downward trajectory extended into April 2024, exacerbating the decreased demand for PSF in the US and consequently impacting the Chinese PSF market.

In Conclusion, ChemAnalyst anticipate, the PSF price is expected to decline in coming weeks due to inadequate cost support for feedstock and reduced demand downstream.

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