For the Quarter Ending June 2023
North America
During the second quarter of 2023, the Polyester Staple Fiber (PSF) prices in the US market experienced a continuous decline. The upstream industry faced volatility in feedstock and crude oil prices due to the announcement of production cuts by OPEC+ members. However, low demand for yarns and spun yarns, specifically in the apparel sector, weakened the PSF market in the region. The prices of key raw materials like Mono-Ethylene Glycol (MEG) also faced downward pressure. In the meantime, rising inflation and high-interest rates in the region weakened consumer spending, further dampening demand. The filtration industries also experienced unsatisfactory demand. Though the inflation rate was decreasing, it remained at a level that constrained consumer spending, especially in the home-textile sector. As a result, consumers were cautious with their spending, leading to low demand in the market. Furthermore, producers decreased their manufacturing activity due to high inventory and low purchasing activity in the region. The FRED data also showed that the production price index of the US market decreased in June. Ultimately, the PSF price trended downwards throughout the second quarter, reaching USD 1378/MT CFR Texas during June 2023.
APAC
In the APAC market, the Polyester Staple Fiber (PSF) industry declined continuously throughout the second quarter of 2023, primarily due to a rise in stocks caused by reduced demand for polyester materials. The textile sectors, including the home textile and clothing industry in South Korea, experienced difficulties with decreasing orders and production cuts. Although there were positive signs of improvement in supply chains from manufacturers, leading to an accumulation of excess inventories in the region and resulted in a decline in PSF prices. The PSF industry's operating load also continued to rise, along with an improved operating rate of PSF industries. Healthy imports from China were observed as the operating rate of PSF industries in the Zhejiang and Jiangsu regions of China remained optimal. According to Statistics Korea data, the consumer price index remained unchanged in June 2023, with the figure hovering at 111.12, as weak global demand impacted the market. Consequently, consumers reduced their spending, and firms either reduced their selling pressure or maintained stable prices to stimulate sales in the region. As a result, the June price for PSF declined and settled at approximately USD 1081/MT CFR Busan.
Europe
The demand for Polyester Staple Fiber (PSF) in the European market has deteriorated throughout the second quarter of 2023. Industry experts and analysts attribute this sluggishness to an oversaturated demand, resulting in an abundance of yarn inventories in mills across the region. The Eurozone Manufacturing PMI also declined to 43.6 in June 2023 due to low production costs amid a slowdown in new orders. Rising inflationary in the Euro Area had directly impacted consumer confidence and spending patterns, particularly in sectors that heavily rely on discretionary purchases like textiles and apparel. However, despite the challenging market conditions, the European market has managed to maintain a smooth supply and optimal inventory levels for PSF. This effective management of supply and inventory contributes to an overall sense of stability in the region, despite the PSF industry experiencing a downward trajectory. Conclusively, the Polyester Staple Fiber (PSF) price declined throughout the second quarter and settled at around USD 1327/MT CFR Hamburg during June 2023.
For the Quarter Ending March 2023
North America
The cost of Polyester Staple Fibre (PSF) increased during the first quarter of 2023. The rising cost of upstream purified terephthalic acid (PTA) and Ethylene Glycol gave polyester staple fibre a boost. Because of the sharp increase in crude oil prices around the world, both feedstocks had stabilized. Additionally, a slowdown in production rates resulted from the disruption after months of contentious labor discussions between the union dock workers and their employers, as industries experienced a labor shortage in the second half of the quarter. While few PSF enterprises allegedly suffered selling pressure as a result of reduced inventories, the operating rate of the textile industries remained mild. As a result, throughout the first quarter of 2023, the PSF market maintained its bullishness.
APAC
The processing margin for Polyester Staple Fibre (PSF) fluctuated over the first quarter as prices went up and down. The increasing demand from the spinning and weaving industries led to the increment in Polyester Staple Fibre prices in the first half of the quarter. However, several other factors influenced the pricing in the second half of Q1, including increasing stocks, shifting supply and demand dynamics, and unfavorable market sentiment, which were to be blamed for the price decrease. Overall, it appeared that a mix of supply and demand variables, as well as shifting feedstock prices, had an impact on the PSF market in Q1.
Europe
In the first part of the quarter, prices for Polyester Staple Fibre (PSF) increased as demand in the end-use industry increased. The region's overall stocks were reducing since demand from the textile and home furnishings sectors was finally building up. The upward trend in its price was also influenced by slow production rates and a supply disruption at the conclusion of the quarter brought on by worker demonstrations in Europe over low wages and unfavorable working conditions. However, the price for PSF fell for the major part as the region's supplies began to rise. Also, due to the few inquiries from the consumer's end, mounting inventories, and unfavorable consumer attitudes, the market mood in the European PSF remained subdued for a major part of Q1.
For the Quarter Ending December 2022
North America
The price trend for Polyester Staple Fiber in the quarter fourth of 2022 has been declining throughout the quarter. The reason behind the price decrement is changing market situation and reducing demand outlook from downstream industries. The slower trading activity came as market participants monitored Hurricane Ian's impact on Florida, far removed from the Texas-Louisiana Gulf Coast's refining, disrupting the production of PSF. High inflation and ongoing retail supply chain issues in the United States were casting dark clouds over important holiday shopping. Meanwhile, during the first half of the quarter, Hurricane Ian dampened production across the rest of the US. Conclusively, the price for PSF declined and settled at USD 1440/MT CFR Texas.
APAC
Throughout the APAC region, the price trend for Polyester Staple Fiber followed the same trend, with prices mainly declining in the region. Since South Korean shipbuilding industry experienced its worst labor shortage, and they were finding it difficult to produce the number of hull blocks necessary to meet their delivery schedules. Also, demand from the commercial market for its utilization of fiber fillings in cushions and sofas was not sufficient enough in the Q4 of 2022. Meanwhile, in China, small firms have struggled to reach production targets to ensure supplies during the winter season because of the strict Zero-Covid Policy. So, the reported demand ranged from modest to low during the quarter.
Europe
The price of Polyester Staple Fiber increased in the early half of Q4, which forced a reduction in price as Q4 progressed. A few of the reasons influencing the price shift throughout the course of the quarter were rising energy prices, surging inflation, and low inventories. Furthermore, PSF prices in European nations climbed in the early stages of Q4 as a result of escalating geopolitical unpredictability and rising energy prices. High gas costs and sensitivity to gas and power prices also had a negative impact on PSF prices. Later, prices for polyester staple fiber in Germany decreased as consumer confidence remained muted and polyester chip prices declined. A false sense of security was also caused by the decline in European natural gas prices for December, and the price of the commodity was also easing.
For the Quarter Ending September 2022
North America
Prices for Polyester Staple Fiber decreased due to a deteriorating outlook for domestic demand. Most downstream weaving firms were cautious about raw materials purchase, as the market's overall trading environment was light, and demand was not healthy. At the same time, producers were primarily concerned with operational cuts as weaker demand led to material accumulation on the domestic market. Feedstock prices for Purified Terephthalic Acid (PTA) and Mono-Ethylene Glycol (MEG) decreased with falling crude oil prices during the first half. While in the later period, production was severely disrupted due to Hurricane Ian's effects in the country's southern region, which reduced inventories, causing a marginal hike in price during September.
APAC
The price of Polyester Staple Fiber eventually dropped dramatically as the market for the feedstock PTA (Purified Terephthalic Acid), and MEG (Mono-Ethylene Glycol) shrank, which coincided with a reduction in the production cost of PSF. The inventories were also overstocked owing to a lack of consumer demand and a surplus of supply. Meanwhile, the price of PSF in the domestic market also decreased due to a decline in downstream demand for Fibre fillings in cushions and sofas. At the same time, the operating rate decreased, and the overall downstream orders were sluggish. Later as South Korea's central bank increased interest rates and warned that there would be more to come, demand for the product was severely affected.
Europe
In Germany, Polyester Staple Fiber prices dropped in the first half of Q3 since the demand outlook weakened in the domestic market. Orders in the domestic market continued to decline, new orders for foreign trade were not issued smoothly, and shipments slowed down during the third quarter. Thus, the wait-and-see sentiment stood firm, with manufacturers mainly focused on operation cuts, as sporadic demand caused stockpiling material in the domestic market. Later, the supply chain was disrupted owing to low water levels in the Rhine River and congested ports, delaying more than 2% of the world's shipping capacity, which was halted outside Germany's North Sea ports.
For the Quarter Ending June 2022
North America
In North America, Polyester Staple Fiber price increased by 5 % in the first half of Q2, which dipped later. The increasing demand for polyester staple fiber in sportswear, and activewear from the garment industry, are propelling the market forward. Furthermore, orders from the home furnishing segment for making pillows, sofas, bed sheets, carpets, and rugs had increased the market value for polyester staple fiber in the region. Meanwhile, feedstock Purified Terephthalic Acid (PTA) and Mono-Ethylene Glycol (MEG) remained volatile throughout the quarter. During the second half, the price for PSF dipped, backed by sufficient availability and low offtakes from the downstream sector. The operating rate of downstream industries also declined, foreseeing the dull market sentiments. Therefore, the PSF price fluctuated and settled around USD 1583/MT CFR Texas in May 2022.
APAC
The Polyester Staple Fibre market has been firm throughout the first half of Q2, but it dipped in the second half. The price change has been due to intense cost pressure from upstream Purified Terephthalic Acid (PTA) and constrained supply fundamentals. The global Crude oil supply speculations are unable to ease, and crude oil prices have been trending upwards since the beginning of the Ukraine-Russia conflict. This has increased overall cost pressure on key-value chains, including Polyester Staple fiber. Therefore, the price for PSF rose and settled at USD 1237/MT FOB Shanghai in June 2022. In contrast, the Indian market saw an increment in its rate as the downstream demand improved. Reliance Industries Limited has also increased the price of feedstock in the domestic market. Rigid order recovered in some companies since May stimulated by higher cost pressure. Conclusively, the price for PSF 1.2D rose and settled at USD 1664/MT Ex-Silvassa in June 2022.
Europe
In Europe, Polyester Staple Fiber rose throughout the quarter as demand for the product remained consistent throughout the months. Feedstock Purified Terephthalic Acid and Mono-Ethylene Glycol have been volatile since the war between Russia-Ukraine. Since then, the market for Crude Oil has been firm, affecting the pricing of petrochemical derivative products. Further, Turkey’s dependency on China, India, and Indonesia for importing the product has led to the soaring market trend because of supply tightness and port congestion. In addition, due to the impact of the epidemic in China, transportation of goods was limited, which kept booming the warning of unavailability of material with manufacturers in Europe. Thus, under the influence of cost and supply, the price of polyester staple fiber showed strong performance in the domestic market, and the price for PSF 1.2D settled at USD 1837/MT CFR Haydarpasa in June 2022.
For the Quarter Ending March 2022
North America
In North America, Polyester Staple Fibre (PSF) witnessed decline in its trend in the first half of Q1, followed by a sudden increment in its price by 9%, owing to high feedstock prices. Upstream PTA (Purified Terephthalic Acid) and MEG (Mono-Ethylene Glycol) also fluctuated in the domestic market amidst high crude oil prices due to the Russia -Ukraine conflict. Purified Terephthalic Acid imports from Asian countries were hampered which also caused the domestic market prices to hike. In addition, port congestions and rising shipping costs further increased the prices of PSF. Therefore, the PSF market grew and settled at USD 725 FOB US Gulf by March.
Asia Pacific
Demand from the downstream textile industry boosted the price of Poly Staple fibre (PSF) in the Indian market. Purified Terephthalic Acid (PTA) and Mono-Ethylene Glycol (MEG) prices have gained since the beginning of the year due to high energy values which increased overall cost of production for PSF. In China, the PSF market rose in the first half of the quarter, later sustained in the second half of Q1 owing to the volatile feedstock prices. As a result, the price increased and reaching USD 1230/MT in March. Further, several curbs in the Chinese market made PSF weaker, causing a decline in its trend.
Europe
In Europe, the Polyester Stable Fibre (PSF) market observed a hike in the first half of the quarter, followed by a decline in its trend, which later rebounded by 6% in the second half of Q1. This variation in price trend was attributed to the war between Russia-Ukraine which disrupted the demand-supply dynamics. Even though the downstream demand was deemed stable, disrupted supply owing to operational cuts fluctuated the price value of PSF. Feedstock import from Asian countries was reduced due to the limited port activity, which caused enhanced upstream cost. Therefore, the price for Polyester Staple Fibre settled at USD 1493 CFR Hamburg (Germany) in March.
For the Quarter Ending December 2021
North America
Limited availability of feedstock PTA hampered production rates of downstream PSF. 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 PSF throughout the quarter. Feedstock MEG availability was robust throughout the quarter as upstream ethylene stabilized in Q4. Prices of PSF were assessed at USD 1273 per MT in December. Imports of PTA from Asia were unsustainable on the back of incessant rise in freight charges and shipping costs.
APAC
Polyester Staple Fibre (PSF) market started the last quarter on a strong note where healthy demand from downstream industries and rising feedstock prices contributed towards bullish market sentiment in China. However, PSF market lost steam towards the second half of Q4 as demand stabilized meanwhile cost pressure from feedstocks eased in November and December. PSF prices increased in October 1220 to USD per MT while prices declined in H2 of Q4 to USD 1104 per MT on FOB basis. Price pressure of soaring raw materials has pushed up the price of Polyester Staple Fibre in Indian market throughout Q4 meanwhile there was increased pressure from high demand from domestic textile sector. Festive season brought optimism across Indian textile industry coupled with recently introduced PLI scheme for textile manufacturers by Indian government. PSF 1.2 D grade prices consistently increased from October to December and were at INR 102400 per MT after conclusion of the last quarter.
Europe
PSF 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 PSF across the continent. Limited availability of feedstock PTA in Q4 culminated in declined production rate as PSF 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 Polyester Staple Fibre. Imports of MEG and PTA were limited from Asia as resolutely high freight charges made imports uncompetitive and unsustainable. In December, PSF prices were assessed at USD 1340 per MT.
For the Quarter Ending September 2021
North America
The price trend of Polyester Staple Fiber (PSF) witnessed an upward trajectory during 2021 led by strong raw material rates. In the US market, the demand for PSF remained bullish from downstream sectors including apparel, home furnishing, construction, and automotive as operating rates ramped up after the Q2 hiccups. The supply of Polyester Staple Fiber (PSF) was low as the availability of raw material PTA and MEG was limited which led to an increment in prices of PSF. Dented shipments out of the US due to Hurricane Ida paved the way for several Asian buyers in the trading sphere.
Asia Pacific
During Q3 of 2021, the prices of Polyester Staple Fiber rose significantly in the Asia Pacific region. In India, despite regular intervention by the government in stabilizing staple fibers prices, PSF kept its upward trajectory in August. Increasing raw material PTA and MEG prices were the major reason behind this consistent rise during the quarter. In the meantime, the Indian demand remained stable under optimism of the coming festive season in the country. Thus, PSF prices rose effectively from USD 1085/MT to USD 1324/MT from July to September. In China, polyester industries entered the maintenance season in August and Several producers declared force majeure or curtailed the production volumes at their facilities. However, sharp surge in international crude offered strong cost support for the Chinese PTA.
Europe
In the European region, various downstream Polyester producers curtailed operations to cope with slowing textile demand, and the market sentiments were compounded by the announcement of new supplies in the Asian markets. Uncertainty over upstream MEG is likely to create further volatility in PSF prices in Q4. The market suffered from supply disruptions on the raw material MEG front, leading to increased Polyester Staple Fiber (PSF) prices in Q3 2021.
For the Quarter Ending June 2021
North America
In Q2 2021, supplies of Polyester Filament Yarn (PFY) were restrained, despite improved plant operating rates in key feedstock PTA and Mono-Ethylene Glycol plant. As early quarter deliveries were still pending, most of the cargoes were diverted to close backlog orders. Supply crises was further exacerbated amidst the diversion of upstream to PU manufacturing facilities. Although the demand remained consistent from the downstream industries, as the mass vaccination programmes amplified the public and market movement in North American region. Thus, prices of PSF witnessed firmness in the quarter ending June 2021.
Asia Pacific
In the Asia Pacific region, supplies remained constrained owing to the reduced production margins of upstream PTA and MEG which impacted the availability of Polyester. Situation was further exacerbated as the second COVID wave curtailed the industrial and market outlook and depressed the market sentiments of upstream PTA and MEG in the South Asian market. Whereas China exported vast volumes of cargoes to the US, throughout the second quarter. Overall demand remained balanced in Q2 2021, as the demand was majorly driven by the export market, where the offtakes from the textile industries were consistent. Due to the low market activities, inventories levels surged in India thus producers were compelled to reduce offers to initiate offtakes. As a repercussion, prices OF PSF at Ex-Work Silvassa settled at USD 870 per tonne in June.
Europe
The European Polyester Staple Fiber (PSF) market outlook remained uncertain amidst short supply conditions. Imports from the US gradually improved but the availability remained low to meet the end use demand. Further the imported volumes of upstream was diverted towards the PU manufacturing industries which further hindered the manufacturing of PFY. Demand was healthy from the downstream textile industries, as a repercussion the Polynt Composites surged the prices of Polyester Fibers by USD 352 per tonne in April.
For the Quarter Ending March 2021
North America
Supplies of PSF in the North American region were tight, owing to the shortage of key feedstocks due to the high shipping freight cost amid the severe freezing weather hits the USA Gulf region. The climate crises in February caused multiple power outages which forced the regional plants to shut down during that time frame. Demand improved with gradual improvement from the downstream textile industry. A leading manufacturer surged the prices of PSF exported to the European and Middle East region by +USD 362/MT, due to high delivery and packaging cost.
Asia-Pacific (APAC)
Asian PSF market remained balanced to tight during the first quarter of 2021, as the addition of new feedstock plants in China kept the upstream availability supple towards the production of PSF, however some constraints were witnessed due to the reduced import from the western regions. IGPL announced plans to setup PA plant in Gujrat, the facility will be merged with production UPR to boost the domestic textile sector. PSF prices in India were stable throughout the quarter with USD 931 per MT for February deliveries. However, prices took a downtrend in quarter end due to the resurgence of COVID in several parts of the region.
Europe
PSF market in the European region remained tight during the first quarter of 2021, owning to the reduced imports from the Asian region, due to Suez Canal blockage and high shipping freight cost. Extreme cold weather in the northwest Europe further created the transportation hinderance and delays in supplies of key feedstock. Demand was strong throughout the quarter due to better offtakes from the downstream automotive and construction sector.
For the Quarter Ending September 2020
North America
The North American PSF market struggled to recover the lost uptrend during the third quarter due to disrupted trade dynamics and macroeconomic fragility on account of rising COVID-19 cases in the several economies. As per the market updates, Hurricane Laura forced several US polyester fiber plants to remain shut in Bay Saint Louis and Mississippi, causing them to stay non-operational for over a month. Major producers in the region reported subdued sales and pressured rates despite reportedly slight gains observed in the feedstock Monoethylene Glycol (MEG) due to regional material shortage.
Asia
The Asian PSF market took longer-than expected to level up since July as sluggish sales continued to hamper the already oversupplied market. However, the overall demand showed signs of recovery entering September amid the peak season as some countries observed activity ahead of the festive season and boosted year-end sales. Some Indian traders were heard sighing that the outbreak of coronavirus has dragged the global economy into recession, which has eventually affected the consumption of polyester-made textile products such as garments during the quarter. China which is the world's largest polyester producing country reported improved operating rates on the back of rising export orders. PSF 1.4 Denier FOB NE Asia were assessed around USD 700 per tonne during the quarter, despite firming feedstock Monoethylene Glycol (MEG).
Europe
European textile imports stayed muted-to-low during the quarter as major players were heard grappling with ample polyester inventories. The market players seemed apprehensive as dampened production rates in the textile sector which may remain pressured against the backdrop that some European countries declared lockdowns to combat second wave of coronavirus infections may continue to affect the offtakes. European apparel imports have declined at a much slower pace in August and Chinese PSF export volumes to EU were assessed to decline by about 20% in volume terms, from the previous year. As PSF strongly traces feedstock MEG, prices remained additionally impacted with the firming feedstock
