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.