Quarterly Update on Global Polyester Filament Yarn (PFY) Market
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.
