For the Quarter Ending March 2024
North America
In the first quarter of 2024, the North America region witnessed a varied pricing landscape for non-woven fabric. Numerous factors influenced these pricing dynamics during this period. A primary factor was the limited availability of raw materials, particularly Polypropylene, crucial for non-woven fabric production. This scarcity resulted in increased production costs, driving non-woven fabric prices higher in the early months of the quarter.
Furthermore, strong demand from downstream industries, notably the textile and clothing sectors, contributed to price hikes. This surge in demand led to a supply-demand imbalance, further fueling the upward trajectory of non-woven fabric prices.
In the USA, the price trend for non-woven fabric mirrored the overall market trend. Prices steadily rose throughout the initial months of the quarter and then declined in the latter part of the quarter due to decreases in production costs and feedstock prices. Despite this, the US market experienced a 6% increase compared to the previous quarter, reflecting the prevailing positive market sentiment. However, it's noteworthy that there were no price changes during the first quarter of 2024 compared to the same period in 2023.
APAC
In the first quarter of 2024, the APAC region observed a varied trend in Non-Woven Fabric prices. Several significant factors influenced market prices during this period. Overall, the region experienced a decrease in prices, indicating a downward trajectory. This decline can be attributed to factors such as sluggish demand from downstream industries, reduced consumption, and low operating rates. China, in particular, saw the most significant price fluctuations in the region. The non-woven fabric market in China exhibited mixed sentiments during Q1 2024. Prices declined during the first and last month of the quarter while showing an upward trend in the middle. Subdued demand from downstream sectors, lower consumption, and ample inventory primarily influenced the market dynamics. These fluctuations were also influenced by changes in the price of the raw material, polypropylene, which drove both the upward and downward curves in product prices. The pricing environment during Q1 2024 can be characterized as negative, with prices experiencing a substantial decline throughout the period. Additionally, prices in the first quarter were down by approximately 1% compared to the previous quarter and decreased by around 7% compared to the same quarter of the previous year.
Europe
In the first quarter of 2024, the European region observed a positive pricing trend for non-woven fabric, with prices showing a steady increase. Several factors played into these price movements during this period. Mainly, there was a noticeable rise in production expenses, fueled by the heightened costs of crucial raw materials such as Polypropylene. Consequently, this led to upward pressure on non-woven fabric prices. Additionally, an increase in freight charges impacted logistics, adding to the overall cost of importing non-woven fabric. In Germany, the fluctuations in non-woven fabric prices were particularly notable. The market witnessed a significant 8% price hike during the first quarter of 2024 compared to the previous quarter. This increase can be attributed to the constrained supply of non-woven fabric due to limited inventory and disruptions in the shipping sector. The simultaneous rise in production costs and freight charges further contributed to the price surge in Germany. However, looking at the year-on-year perspective, the price of non-woven fabric in Q1 2024 showed a modest 3.5% increase, indicating the overall upward trajectory in prices over the past year.
For the Quarter Ending December 2023
North America
During the fourth quarter of 2023, Non-Woven Fabric prices in North America displayed mix trend with a supply ranging from moderate to low and subdued demand in most regions.
Towards the end of November 2023, the market witnessed an increase in demand in certain areas, accompanied by a partial rise in raw material costs, particularly polypropylene. Despite this cost increase, the North American Non-Woven fabric market demonstrated resilience, attributing it to continuous innovation in manufacturing processes and the exploration of alternative materials. Contrastingly, the market in North America exhibited a bearish trend, marked by high supply and weak demand in the region, leading to manufacturers grappling with excess inventories and resulting in price declines in November.
The sluggish downstream enthusiasm amid bulk material availability and the anticipation of rising production costs in a volatile feedstock market contributed to the downtrend. The regional outlook for North America remained cautiously optimistic, anticipating increased demand from downstream textile industries during the peak season.
APAC
Non-woven fabric prices for the APAC region showcased fluctuation during Q4 2023, with moderate to low supply and muted demand in most countries. The market experienced a significant uptick in demand in China towards the end of November, along with a partial hike in raw material costs, particularly polypropylene. Despite the partial hike in costs, the Non-woven Fabric market in China remained resilient due to continuous innovation in manufacturing processes and the development of alternative materials. In India, the market was bearish with high supply and weak demand resulting in manufacturers sitting on bloated inventories. The downtrend continued, with the prices declining in December 2023. Downstream enthusiasm remained sluggish amid bulk availability of material, and production costs were expected to rise amidst a volatile feedstock market. The market outlook for the APAC region was optimistic, with healthy demand expected from downstream textile industries during the peak season. The latest price for Non-Woven Fabric-FOB Shanghai in China for Q4 2023 was USD 1466/MT.
Europe
During the fourth quarter of 2023, Non-Woven Fabric prices in Europe exhibited mixed sentiments amid a scenario of moderate to low supply and subdued demand across most countries. The market observed a surge in demand in some regions towards the end of November, coinciding with a partial increase in raw material costs, particularly polypropylene. Despite the cost uptick, the European non-woven fabric market demonstrated resilience, attributed to ongoing innovations in manufacturing processes and the exploration of alternative materials. It is noteworthy that Germany experienced a technical recession in December 2023, as indicated by the Purchasing Managers' Index (PMI) for both the manufacturing and services sectors, which remained below 50 in December. Despite a slight revision to 43.3 from a preliminary figure of 43.1, compared to 42.6 in November, signifying contraction for the sixth consecutive month. This raises the likelihood of the country entering a technical recession, defined by two consecutive quarters of negative GDP growth. Furthermore, there were noteworthy and slightly accelerated declines in both output and employment.
For the Quarter Ending September 2023
North America
There was mixed opinion in the prices of non-woven fabric during the third quarter of 2023. In the initial part of the period, the textile industry experienced a reduction in demand from downstream sectors, and it faced a loss of cost competitiveness due to a shrinking market for the raw material, wood pulp. Simultaneously, the supply chain was impacted by decreased demand for non-woven fabric, leading to an excess supply of this product. As a result, suppliers had to reduce their profit margins on non-woven fabric to sell off the excess stock. Globally, the entire textile supply chain faced sluggish conditions. This situation was worsened by factors such as the typical slow season and high temperatures, which led to reduced operational capacities for fabric mills in the quarter. Nevertheless, in the latter part of the quarter, the industry saw a resurgence in demand, driven by increased purchases from the used clothing sector. Additionally, traders and distributors struggled to procure an adequate number of raw materials to sustain their production processes. Consequently, the manufacturing sector exhibited slight growth, as indicated by the US Purchasing Managers' Index (PMI) for September. Furthermore, the monthly rise in the Consumer Price Index (CPI), a crucial inflation metric, had a further impact on consumer prices.
APAC
In the Asia-Pacific region, the non-woven fabric market had a mixed performance during the third quarter of 2023. In the first half of the quarter, the market declined due to rising stocks, and there was little enthusiasm for restocking. The export market also suffered from weak demand in importing countries, and concerns about a global recession further impacted exports as demand remained low. Additionally, the off-season for traditional industries contributed to a cautious and wait-and-see approach, reducing enthusiasm for procurement activities. However, in the latter part of the quarter, there was a slight improvement in the non-woven fabric market, driven by increased demand from downstream textile industries. Meanwhile, manufacturing activity faced a downturn, and the region's supply chain was disrupted by the damage caused by typhoon Doksuri. This natural disaster resulted in decreased productivity and affected various aspects of the supply chain, including cargo handling and customs clearance. On the positive side, the downstream sector performed well, and inflation remained stable.
Europe
Non-woven fabric prices saw a consistent decline in the third quarter of 2023. This drop in prices was primarily attributed to cautious spending patterns driven by inflationary pressures affecting the Eurozone. Consequently, the European textile industry experienced a downturn in the first half of the quarter. Moreover, there was a drop in fresh orders, which reflected a sense of uncertainty among customers in the market. While some companies did reduce their workforce in response to the situation, many took a cautious approach to staff reductions, avoiding significant layoffs. Moreover, the broader business activity in the Eurozone contracted in August 2023, as indicated by a decrease in the flash composite purchasing managers' index (PMI) output index across both manufacturing and services sectors. In Order to attract customers, major non-woven fabric manufacturers were compelled to lower their prices, but consumers and buyers were reluctant to place new orders. Consequently, there were limited orders, as most participants in the non-woven fabric market opted for a wait-and-see approach.
For the Quarter Ending June 2023
North America
The North American Non Woven Fabric market witnessed a marginally bearish trend throughout the second quarter of 2023. The was largely due to a reduction in the costs of raw materials such as polyamide, polyethene and polypropylene. The reduction in the prices downstream processing of crude oil further contributed to the decline of crude oil. The main demand for non-woven fabric was anticipated from the housing and construction industry, which was expected to improve. At present, the small downstream demand from healthcare units may be able to stabilize the marginally bearish trend of the ongoing market. Demand from the consumer section also looked sluggish as end users opted to reduce purchasing activities amidst the slow economic recovery of the region. Declining crude oil and downstream processing prices, subsidization of energy costs, optimal production rates and recent improvements in the supply chain all indicate that supply was high in the region. However, moderate demand is only attributed to healthcare units where non-woven fabrics find most of the applications. Export orders from overseas were also not much present as the fear of the poor economic conditions shadowed a gloomy outlook on the market and restricted purchasing activities.
APAC
The market for Non-Woven Fabric witnessed largely mixed trend throughout the second quarter of 2023, which was largely because the costs of raw materials such as polyamide, polyethene and polypropylene fluctuated in Asia-Pacific. Although the reduction in the prices of downstream processing of crude oil, the demand from downstream construction, battery applications and filter industry were moderate. Demand from the consumer section also looked moderate as consumers restricted purchasing in bulk, as uncertainty of the economic conditions of Asia prevailed despite having improved marginally. Declining crude oil and downstream processing prices, no records of plant shutdowns and improvements in the supply chain all indicate that supply was high in the region. However, moderate demand is only attributed to sanitary consumables which hold the larger share of buying sentiments. The demand from international offtakes for non-woven fabrics also looked bleak. However, demand from automotive industry, which is recovering, is likely to improve as automotive manufacturers attempt to manufacture lightweight automobiles.
Europe
The market for Non-Woven Fabric witnessed largely mixed trend throughout the second quarter of 2023, which was largely because the costs of raw materials such as polyamide, polyethene and polypropylene fluctuated in Europe. Although the reduction in the prices of downstream processing of crude oil, the demand from downstream construction, battery applications and filter industry were moderate. Demand from the consumer section also looked moderate as consumers restricted purchasing in bulk, as uncertainty of the economic conditions of Europe with the PMI declining from 50.9 to 49.8. The declining crude oil and downstream processing prices, healthy production output and minimal disruptions in the supply chain all indicate that supply was high in the region. However, moderate demand is only attributed to battery separation applications as the European Union invests heavily in electrification and battery technology. The demand from international offtakes for non-woven fabrics also looked bleak due to sluggish economic growth.
For the Quarter Ending March 2023
North America
During the first quarter of 2023, Non-Woven Fabric showcased irregular market sentiment in the North American region. The mixed sentiments in the feedstock Polypropylene market had contributed to the fluctuation in Non-Woven Fabric prices. The high demand for Non-Woven Fabric from the clothing sector also kept prices high in the first half of the quarter. However, the decline in Non-Woven Fabric prices in the second half of Q1 suggests that the demand had tapered off or the supply had increased. As a result, the downstream market's fluctuation in a lower range throughout the final month of the quarter further strengthened the downward trend in Non-Woven Fabric prices.
Asia- Pacific
The non-Woven Fabric market in the Asia-Pacific region experienced some notable fluctuations during the first quarter of 2023. The increase in Non-Woven Fabric prices during the first two months was driven by rising manufacturing costs, which were in turn driven by increased raw material costs for Polypropylene. The rising demand for N95 face masks and PPE also put pressure on the Non-Woven Fabric market during the epidemic situation in China. However, the relaxation of Covid policies and the decline in demand for masks and PPE contributed to the availability of Non-Woven Fabric. This, in turn, led to a decrease in prices. Additionally, the resumption of production activity at domestic companies and the reduction in supply-chain disputes also contributed to mixed sentiments in the Non-Woven Fabric market. As a result, Non-Woven Fabric prices hovered around USD 1581/MT FOB Shanghai during February.
Europe
In the European region also experienced mixed pricing in Non-woven Fabric prices throughout the first quarter of 2023. The region had healthy demand during the first half of the quarter, but demand started to decline in the second half, resulting in a buildup of inventories in warehouses. The supply chain also began to function more efficiently in March, which allowed for a consistent flow of goods to local and global markets. Domestic producers, however, cut back on production as the year-long destocking season began in March, which contributed to the mixed pricing in Non-woven Fabric during the quarter. Overall, it seems like the Non-woven Fabric market in the European region was volatile throughout the first quarter of 2023, with fluctuating demand and production levels.
For the Quarter Ending December 2022
North America
Non woven fabric was in huge demand in North America during the first part of the fourth quarter. The target market's growth had been hampered by volatility and high raw material prices. Since 15% of the global market share for nonwoven fabrics has been held by the North American market. High orders from the downstream departments of personal care, automotive, and filtration thus encouraged the expansion of nonwoven fabric in the area. Later, as the US battled with poor demand, the inventory rose, which caused pressure on export and local pricing. In the USA, delays in cargo imports and exports were brought on by port closures and restricted port operation hours. Consequently, nonwoven fabric prices dropped in the second half of Q4.
APAC
The price of Non woven fabric inclined in the first half of the fourth quarter. The price increase was mostly brought on by the increasing market demand expectations. In the second half, the demand for nonwoven fabric was not very great, and the operational load of polyester was not very high either. In the end, the Chinese market's demand for hygiene, personal care, automotive, and filtering material decreased due to low offtakes from downstream textile industries. Additionally, a covid ban brought on by an increase in new cases has tempered the market mood in the area. As a result, the price for Nonwoven Fabric declined in the second half, and the price settled at USD 1546/MT FOB Shanghai during November 2022.
Europe
The price trend of Non woven fabric has been increasing since the beginning of the fourth quarter. The region's production was reduced as a result of the rising feedstock Polypropylene, and nonwoven fabric production costs had gone up in Europe. Meanwhile, the sales-to-inventory ratio in the domestic region was also unbalanced due to the decline in demand from the downstream hygiene, personal care, and automobile industries. Considering the aforementioned factors, it can be seen that although production costs increased, poor demand from downstream industries led to the accumulation of large amounts of bulk stocks in the region, which led to a fall in nonwoven fabric prices in the second part of Q4.
For the Quarter Ending September 2022
North America
Due to the weakening consumers' confidence, Non-Woven Fabric in the American market reduced at the beginning of the third quarter. Nonwoven Fabric, however, dropped to a low level due to unfavorable market sentiments and sluggish offtakes from the end-use textile industry. The demand for exports declined along with port congestion and fluctuating freight costs. At the same time, the domestic market's demand for nonwoven fabrics kept declining, and the price pressure on polypropylene as a feedstock also slowed, lowering the production cost. Thus, the market for Non-Woven Fabric witnessed a declining trend throughout the third quarter.
APAC
Nonwoven Fabric prices in China decreased throughout the third quarter of 2022. The unfavorable market sentiments and weak end-use industry offtakes had caused its price to fall to a low level. One of several factors that significantly affected the global nonwoven hygiene market is the low usage of nonwoven fiber in the health sector. Spot talks over the second half became intense due to concerns over possible shipping delays caused by typhoons. However, the weak Chinese yuan and a slower-than-expected recovery in demand caused the price to decline. According to the ChemAnalyst database, the Nonwoven Fabric price declined and hovered around USD 1444/MT during September.
Europe
Demand for nonwoven fabrics continued to fall on the domestic market, coinciding with a slowing cost pressure for polypropylene as a feedstock. However, unfavorable market sentiments and weak end-use industry offtakes have caused its price to fall to a low level. Additionally, there is a declining market trend for nonwoven hygiene products such as adult diapers, feminine sanitary products, and diapers. In response, the region observed a significant supply-demand imbalance since the second quarter, besides showcasing no sign of recovery in the short term. Sentiments for Polypropylene in the Eurozone were silent. As a ripple effect, the driving factors were restricted within the domestic market amidst low export demand.
For the Quarter Ending June 2022
North America
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.
APAC
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.
Europe
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
North America
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.
Asia Pacific
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.
Europe
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
North America
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.
Asia pacific
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.
Europe
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
North America
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.
Asia Pacific
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.
Europe
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
North America
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.
Asia Pacific
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.
Europe
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
North America
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.
Asia-Pacific (APAC)
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.
Europe
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
North America
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.
Asia
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.
Europe
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.
