For the Quarter Ending March 2022
North America
The PSF market showed mixed sentiments throughout Q1-2022, with demand increasing in the first and last month of the first quarter. Rise in prices of raw material Purified Terephthalic Acid cost and Mono-Ethylene glycol as crude oil prices rose, which triggered further growth in the PSF market. Later, due to the low production in Mexico, the United States dependency on Mexico limited the availability of the goods in the domestic market. Further, supply disruptions and port congestion with high transportation costs on goods export made it impossible to meet the demand in the domestic market, and therefore prices of polyester filament yarns in the North American region in the first quarter was firmed and were assessed at USD 1453 CFR Texas in February 2022.
Asia Pacific
After a period of low market sentiment, the Polyester Filament Yarn (PFY) market improved in the second half of Q1. Polyester Filament Yarn market in India experienced a steep rise in raw material costs, along with high demand from the domestic market. During the H2, the seasonal changes in India brought much-needed revival in demand for the textile industry, with manufacturers witnessing firm offtakes from the domestic market while input costs have been rising in the meantime. The manufacturer also increased their production cost along with the consistent increases in raw material costs, which forced them to pass this on to consumers. In conclusion, the prices of PFY increased significantly during the first quarter, settling around USD 1774/tonne Semi dull 110D 48F Ex-Silvassa in February. In China, the market was characterised by a mixed mood, with steady demand from the downstream industry.
Europe
The market for PFY in Europe has weakened in Q1 2022 affected by the shortage of raw material Purified Terephthalic Acid and Mono-Ethylene Glycol. Later, port congestion and high freight charges fuelled prices in the first half eroding market sentiment. It was observed that the consumers were hesitant to buy the product at a high price, resulted in a weak market for PFY in the second half as stocks were sufficient to meet domestic demand. However, with low demand amidst the disrupted supply caused by the conflict between the two countries led to the sluggish market sentiment, therefore the price for PFY 150D/48F in Europe settled at USD 1391 CFR Hamburg in February.
For the Quarter Ending December 2021
North America
Limited availability of feedstock PTA hampered production rates of downstream PFY. For PTA, USA heavily relies on exports from Mexico, however production disruption in Mexico exacerbated PTA supply dynamics in USA as well. Increased cost of raw materials and increasing cost of production culminated into consistent price spikes of PFY throughout the quarter. Feedstock MEG availability was robust throughout the quarter as upstream ethylene stabilized in Q4. Imports of PTA from Asia were unsustainable on the back of incessant rise in freight charges and shipping costs. Therefore, prices of PFY remained on an incessant rise throughout the quarter. In December, PFY prices were assessed at USD 1325 per MT.
APAC
Indian domestic PFY market started the Q4 on a strong note where on the back of festive season demand and soaring raw material cost, prices climbed to INR 138.5 per kg Ex- Silvassa. However, market sentiment deterred towards the second half of the quarter as demand for PFY stagnated while raw material prices stabilized. Consequently, prices dropped to INR 131.8 per kg Ex-Silvassa in December. In China, October witnessed a sharp increase in price stemming from demand push and rising cost of feedstock PTA due to skyrocketing crude oil prices. PFY Market stabilized towards H2 of Q4 owing to demand decline and stabilization in feedstock prices. In lieu of that manufacturers reached a consensus to reduce production rates by 20% in November. China PFY prices were stable at USD 1170 per MT on FOB basis in December.
Europe
PFY market in Europe was termed as lopsided throughout the last quarter as demand fundamentals remained strong while supply dynamics struggled due to curtailed production of PFY across the continent. Limited availability of feedstock PTA in Q4 culminated in declined production rate as PFY market witnessed strong competition from PET market in terms of PTA consumption. Feedstock MEG prices also remained strong due to inflationary pressure which further contributed towards increased prices of PFY. Imports of MEG and PTA were limited from Asia as resolutely high freight charges made imports uncompetitive and unsustainable. PFY prices were assessed at USD 1307 per MT in October.
For the Quarter Ending September 2021
North America
In Q3 2021, Polyester Filament Yarn (PFY) market outlook appeared to be bullish with robust demand and tight supply which pressured the prices to move northwards. Limited availability of the key feedstock stock PTA and MEG led to the hike in their prices that consequently elevated the PFY prices in this quarter. Moreover, the regulation of the antidumping duties on imported Polyester items further influenced the prices of PFY in the region in this timeframe. In addition, severe climate condition in the mid of the quarter impacted the production rates as well as disrupted the supply chains which also sent ripples to the prices of PFY in North America in Q3.
Asia Pacific
During the Q3 2021, the Polyester Filament Yarn market witnessed an uptrend in the Asia Pacific markets. In China, PFY market remained tightened due to the limited availability of the key feedstock PTA and MEG that resulted into the lower production of the Polyester Filament Yarn in the region. In India, an exponential rise in the prices of PFY was seen backed by the constrained supply and improvement in the demand fundamentals after the rebound in the industries as well as commercial activities in the region. Besides, the Indian government cleared the Production-Linked Incentive (PLI) scheme for the textile industry in September that provided optimism among the various niche players and hence boosted the PFY market during the quarter. Consequently, PFY prices have reached USD 1568.60 per MT Ex-Silvassa in September showcased a hike of USD 78/MT since July.
Europe
In Europe, Polyester Filament Yarn (PFY) market remained strong during the third quarter of 2021 backed by the firm demand of the downstream sectors after the resurgence in the industrial and the commercial activities. PFY prices in this time frame traced the upward trajectory due to the supply shortage as well as the hike in the raw materials.
Moreover, continuing the path of previous quarters, Q3 also measured high freight charges and delayed imports which further influenced the pricing trend of PFY in the region.
For the Quarter Ending June 2021
North America
During the second quarter of 2021, supplies of the Polyester Filament Yarn (PFY) were restrained due to the limited availability of the key feedstocks PTA and MEG, as most of the available volumes were diverted to complete the piled-up backlog orders. US department of commerce started the antidumping probe on imports of Polyester yarn from Indonesia, Malaysia, Thailand, and Vietnam as the imported volumes were unfairly sold below their expected values in the domestic market. The demand was consistent from the downstream industries, as the mass vaccination programmes prompted better market movement in North American region.
Asia Pacific
In the Asia Pacific region, PFY supplies were constrained owing to the limited availability of the upstream PTA and MEG which impacted the production of the Polyester Filament Yarn. The situation was further exacerbated by the subdued market demand and restricted commercial movement in the South Asian market as the second COVID wave curtailed the industrial operations. China exported huge volumes of PFY cargoes to the US, throughout the second quarter. Overall, the market demand was balanced in the second quarter of 2021, led by strengthening export market, and rebound in the textile industries. However, slowdown in the Indian markets raised the inventory levels which surged the Ex-Works PFY prices settled at USD 861 per tonne in June.
Europe
The European Polyester Filament Yarn (PFY) market outlook remained subdued amidst short supply conditions due to the limited availability of upstream PTA and MEG. Imports from the US improved but buyers struggled to meet the end use demand. Furthermore, lack of feedstock availability from the manufacturing industries further constrained the manufacturing of PFY. Demand remained balanced and healthy from the downstream textile industries. Moving in accord with the demand trends, Polynt Composites surged the prices of Polyester Fibers by USD 352 per tonne in April.
For the Quarter Ending March 2021
North America
Supply of Polyester Filament Yarn (PFY) in the North American region remained tight, owing to the shortage of key feedstocks due to the high shipping freight cost. Although the Phthalic Anhydride (PA) plants operated normally without disruption despite the severe freezing weather in the USA Gulf region in February, but production hindrance occurred in upstream Diethylene Glycol (DEG) plants. Demand gradually improved with consistent increment in offtakes from the downstream textile industry. AOC Resins, a large-scale producer of product in the region, surged the prices of PFY exports to the European and Middle East region by +USD 362/MT, due to high shipping and packaging cost.
Asia-Pacific (APAC)
The Asian PFY market remained balanced due to tight supply and feeble demand during the first quarter of 2021. In February, IG Petrochemicals Ltd. announced plans to setup PA plant in Gujrat, the plant is will facilitate the production of UPR to boost the domestic textile sector. Moreover, Demand surged ahead of the Chinese lunar new year with improvement in the offtakes from the downstream textile industry. PFY prices in India remained stable throughout the quarter and averaged at USD 931 per MT for February deliveries. However, prices witnessed a downtrend trend by the quarter end due to the resurgence of COVID in several parts of the region.
Europe
The European region PFY market remained tight during the first quarter of 2021 backed by the reduced imports from the Asian region, due to Suez Canal blockage amid higher shipping freight cost. Extreme cold weather in the Northwest Europe further created the transportation hinderance and delayed the supplies of key feedstock. However, with deficit in availability of 2-EH, majority of PA were diverted towards PFY sector. Demand remained strong throughout the quarter due to better offtakes from the downstream automotive and construction sector.
For the Quarter Ending September 2020
Asia
Limited sales continued to hamper the Asian PFY market throughout July, but the overall demand rebounded entering the September month amid the peak festive season and boosted year-end sales. Seeing that complete revival might take longer than anticipated time, economies (like India) eyed on the relief packages provided by the government to revive the textile sector. Disruptions in the raw material supply chain further added to the producer’s worry. Offers were raised as China, the world's leading polyester producer reported improved operating rates on the back of rising export orders. However, the news of imposition antidumping duty over Chinese PFY by the Indian and Vietnamese governments kept the traded volumes relatively low. The news of a major Indian petrochemical player entering PFY production in the coming years kept the Indian markets in close proximity to the country’s ‘Make in India’ goal.
North America
The PFY industry remained deterred by constrained trade and macroeconomic fragility while the American textile industries remained cautious on account of rising COVID-19 cases in the several countries. The news of Hurricane Laura forcing several US polyester fiber units to shut their units in Bay Saint Louis and Mississippi, forced PFY players to stay non-operational for over a month. Major producers in the region reported subdued sales, struggling to transfer substantial gains observed in the feedstock Monoethylene Glycol (MEG) due to consistent material shortage. The news of several US producers filing petition in response to surging low-priced volumes of polyester yarns imports from Indonesia, Malaysia, Thailand, and Vietnam buzzed the U.S. markets.
Europe
The textile imports stayed muted during the quarter ending September as major European players were heard stocked with ample polyester yarn inventories. Production rates in the textile sector were heard pressured as some countries declared lockdowns to combat the second wave of infections which producers feared may affect the offtakes. PFY pries were heard tracing an uptrend aligning with the feedstock MEG and PTA. By the end of the third quarter, Europe was heard seeking more PFY volumes as the demand season began in the region.
