For the Quarter Ending June 2022
The price of raw Polypropylene increased in the second quarter of 2022 due to the limited availability of feedstocks. The supply outlook remains disrupted, whereas the demand fundamental kept a constant high order forcing the significant producers to revise their profit margins. At the same time, one commodity, Crude Oil, saw volatility in its price trend. Thus, given the pressure of high costs and growing demand from textile sectors, the Non-Woven Fabric (NWF) prices rose during this quarter. In addition, the global transportation crisis continued to impact the arrival of cargoes, alongside rising freight costs, causing the low availability of the material in the domestic market.
Non-Woven Fabric prices fluctuated in China, owing to the consistent demand from end-use markets, absorbent hygiene materials, medical and surgical materials, wipes, geosynthetics, and the packaging sector. Meanwhile, the resurgence of Covid-19 in the East-Asia region has further led to more rapid growth in this market with an increasing consumption from the healthcare sector for the mask. In Contrast, Indian Non-woven Fabric prices declined throughout the second quarter, supported by the high availability of inventories and subdued demand fundamentals. Further aided by the volatile market situation, the demand outlook from the downstream sector was dull, as the users were reluctant about procuring in such an unpredicted market situation.
The export trading market of Europe remained hampered in the second quarter due to the Russia-Ukraine war with increased demand from the overseas market due to the vast application of Non-Woven Fabrics. The demand for non-woven fabric has increased in downstream industries such as healthcare for kits and other safety materials and the automobile industry. Europe, the major exporter of Non-woven Fabric, faces the supply issue of Non-Woven Fabric along with the shortage of raw material Polypropylene, leading to reduced operating rates. Further, disrupted commercial and economic activity in Europe constrains the market for Non-Woven Fabric. Raw material Polypropylene remained firm, with rising crude oil values. Volatility in crude oil came after Germany opposed Russian oil, hampering the supply of crude oil in the country.
For the Quarter Ending March 2022
The nonwoven fabric market rose in North America due to high demand from downstream textile industry. The raw material polypropylene also rose with the volatile crude oil price. Downstream demand was observed firm from textile and healthcare industries. The pioneer in the commercialization of non-fabric woven, the USA has been engaged in a strategic partnership to expand its market share.t Therefore, the significant player Berry Global Inc., Freudenberg Group, Ahlstrom- Munksjö, Kimberly-Clark, DuPont de Nemours, and Fitesa were seen expanding their units of Non-Woven Fabric. Thus, the prices for Non-woven Fabric settled at USD 2790/MT in March.
Nonwoven Fabric values turned upward following the buzz of supply disruption amidst the material shortage and high production costs worldwide. The production of Non-Woven Fabric shrunk due to rising feedstock polypropylene values, which is derived from crude oil. Rising uncertainty on an epidemic situation has provided tightness on the supply to its domestic and international market. However, in India no such prices revision has been observed, due to which prices eventually settled USD 2415/MT on an Ex-Location basis in February.
The Non-woven Fabric market rose in Europe with rising feed prices. Onset of the Russia-Ukraine in the second half of the first quarter, created pressure on the production due to the rising raw material cost. Demand from the downstream carpet and clothing segments rose in the regional market. Later, high transportation costs and port congestion contributed in further in the product's price. Therefore, with the hampered shipping industry, the product rose in the domestic market and hovered at USD 2700/MT on an Ex-Location basis in Q1.
For the Quarter Ending December 2021
During the fourth quarter of 2021, the pricing curve of Non-Woven Fabrics shows an upward inclination in North America. Along with firm downstream demand from health care sector, an appreciable growth was observed from the automotive sector for electric vehicles. Thus, the last quarter of 2021 came to an end with a solid increase in demand from its downstream automobile with strong market sentiments. The market witnessed steady increase but the resurgence of Covid by the end of the quarter in the global market led to the uncertainty in the demand pattern.
In the first half of Q4 2021, the prices of Non-Woven Fabric surged due to increasing demand but constraints supply. In early November, Non-Woven Fabric prices in India were assessed near USD 2400 per MT. After a solid growth, the market fell in the second half of the quarter due to sufficient supply and moderate demand, the situation hampered the revenue of major non-woven fabric producers. Despite the third wave of the pandemic, the market made a modest growth in healthcare sector with an increase in product consumption in the region. The Asian market had braced its hike for non-woven fabric because of the declining rates of the omicron virus resulting in a harmless environment with moderate hike in the Asian market.
Due to the robust demand for Non-Woven Fabrics all over the globe, the export trading market of Europe remained on the higher end with increased demand from the overseas market. The need for non-woven fabric increased in the downstream sectors, namely healthcare industries for kits and other safety materials as well as in automobile industry. Pandemic has led to the growth in this market more rapidly with increase in consumption from the consumer’s end.
For the Quarter Ending September 2021
During the third quarter of 2021, the domestic NWF market demonstrated an upward trajectory in North America. A hike in the demand for Non-Woven Fabrics was observed during Q3 from the downstream Healthcare and Automotive sectors. Increasing demand for electric vehicles in the US resulted in the solid need for Non-Woven Fabrics. Also, demand for Non-Woven Fabrics from the healthcare industry was robust. Supply was not adequate to meet the market order size, so the prices of Non-Woven Fabrics increased in the 3rd quarter.
The Asian market showcased a marginal increment in the prices of Non-Woven Fabrics during Q3 2021. In India, Non-Woven Fabric prices kept on rising in the month of July under the influence of firm demand from the domestic market. The price of Non-Woven Fabric rose from USD 2321/MT to USD 2343/MT (for PP grade) during August. Post decline in new pandemic cases, demand for surgical masks and PPE kits remained high, as the precautionary measures have not been disintegrated by the government, while some economies were still battling with the resurgence of COVID cases. In addition, surges in the price of Polypropylene (PP) propelled the price curve to further take an upwards rally.
In the European region, market participants reported a stable hike in the pricing trend of NWF during Q3 with expectations mostly cantered around a stable demand outlook. Some sources even anticipated a stable to firm price trend until the end of the year, thereby denting buying appetite of several downstream consumers. Some sectors outperformed others in terms of demand in Q3 while the global logistics crisis continued to weigh over the arrival of import volumes.
For the Quarter Ending June 2021
During the second quarter of 2021, overall market outlook of Non-Woven Fabrics in the North American region showcased mixed results. Presence of upstream Polypropylene (PP) remained ample in the regional domestic market, whereas the availability of the other counterparts such as Polyamides was extremely tight owing to the restricted availability of the feedstocks Adipic Acid and Caprolactam. Offtakes of Non-Woven fabric remained consistent from the textile sector. Due to the constant diversion of feedstocks to the derivatives industries and tight market outlook, prices in the North American region remains in up stride.
Production in China’s Guangdong region was also negatively impacted due to the power outage and rising COVID cases which further led to hindrance in the trading activities at the Guangdong port. In addition, the rising inflation rate in China surged the prices of Propylene. Therefore, market participants were reluctant to procure bulk volumes which extended the wait and see atmosphere in the regional market. As the demand remained sturdy from the downstream textile and healthcare, prices observed a slight increment in India, with ex-Work Ahmedabad discussions for PP Grade in June settling at USD 2314 per tonne.
In European region, Nov-Woven market faced polymer shortage in Q2 2021. Therefore, the supply outlook was tight throughout the second quarter. Several planned and unplanned turnarounds in various Nylon 6 facilities, further pressurized the market fundamentals in the region. Demand was exceptional from the downstream market as the region observed a seasonal hike in demand from the textile sector. Due to the supply demand imbalance, prices remained in uptrend in the quarter ending June 2021.
For the Quarter Ending March 2021
In the first quarter of 2021, the supplies of NWF became affected due to the shortage of the key feedstock polypropylene (PP) as the several US producers were struggling to protect margins for the downstream sectors amid surged demand and limited availability throughout the region. Several manufacturers were forced to shut down the production due to the severe freeze weather conditions in the USA Gulf region. Demand surged amid the material shortage and constant offtakes from the downstream textile, medical and construction sector. Abrupt surge in prices of PP proportionally hiked the prices of NWF in the North American region.
The demand for NWF from the downstream segments declined by 40% as manufacturers cited skyrocketing prices of the key raw materials causing 30% to 50% reduction in capacity utilizations of Non-Woven Fabric plants in India. Tight and expensive Polypropylene caused a big worry to the fabric producers. Added capacities in China supported the inventories but prices remained high amid the global supply shortage of PP and global inflation in rates. Non-woven demand remained high during the first quarter of 2021 with surge in prices reported amid hiked prices of raw materials. NWF FOB Shanghai price settled around USD 2312 per tonne in March.
During Q1 2021, the supplies of NWF remained constrained as a ripple effect of shortages in supply of PP throughout the region, due to the reduced operating rates in producing belts amid limited commercial and economic activities in lockdown restrictions. Berry Global announced the second investment in its wipes segment, which is likely to prop up demand. The new production line is expected to be commercially commissioned in Q3 of 2022. Quarterly demand was high from the downstream healthcare, medical, automotive, and daily use segments.
For the Quarter Ending December 2020
The Asian Non-Woven fabric market remained strongly supported by raised sentiments due to active restocking by the producers of protective clothing, masks and other preventative products. Prices in Southeast Asia surged during the quarter, following the trend of the feedstock Polypropylene (PP) which rose to an eight-month high during the October month. Availability of feedstock remained a key concern as several plant outages were heard in Japan and China during September and October. Chinese players which control the majority of supply directed to the US, stated that due to skyrocketing domestic demand, the export volumes remained tight with many suppliers facing trouble in securing sufficient volumes. Several economies (like India) reported Q-o-Q gains in the export volumes of certain non-woven used in masks and coveralls as their production levels rose in their efforts to ramp up outbound shipments.
The American Non-Woven Fabric market witnessed strong Q-o-Q growth due to tight product availability from several Asian economies especially China. The regional buying interest remained upbeat due to strong demand for disinfectant wipes, face masks, disposable gowns and other personal protective equipment (PPE) amid surging COVID-19 cases. Upstream PP supply tightness and ease in lockdown restrictions kept the pricing range well above expectations. The hurricane-related plant disruptions heard in Q3 were resolved by Q4 along with the news of start-up of Braskem’s new plant which considerably eased the PP supply shortage. The demand for Non-Woven Fabric increased by 30-40% in the US since the start of the pandemic, a regional trader remarked.
Moving into the fourth quarter, the price of Non-Woven Fabric in the European market continued to feel the impact of supply shortage and by the end of the year prices had touched fresh hikes due to global surge in feedstock PP prices and rising container freight shortage. In October, EU remained the largest Non-Woven export market, registering an increase of about 18.9% over October 2019. Moreover, several German buyers were heard closing their January orders in advance looking at the exponential surge in COVID-19 cases. Regional producers continued to face the heat of surging feedstock PP triggering a spike in non-woven and fiber grades, which seemed to continue in the near-term.