For the Quarter Ending March 2022
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.
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.
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
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.
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.
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
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.
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.
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
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.
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.
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
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.
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.
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
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).
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.
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.