For the Quarter Ending September 2025
North America
• In the United States, the Polyester Tire Cords Price Index rose quarter-over-quarter in Q3 2025, driven by robust feedstock costs and strengthening automotive demand.
• Production costs for Polyester Tire Cords increased in Q3 2025 due to surging Paraxylene, Ethylene, and tightened Naphtha feedstock.
• The Producer Price Index rose 2.6% year-over-year in August 2025, indicating higher input costs for chemical production.
• Demand for Polyester Tire Cords strengthened as US automotive sales picked up significantly in Q3 2025.
• Industrial production grew by a sluggish 0.1% year-over-year in September 2025, suggesting subdued manufacturing activity impacting OE tire demand.
• Retail sales increased 5.42% year-over-year in September 2025, supporting consumer spending despite a 3.0% CPI rise.
• Shrinking chemical raw material inventories in Q3 2025 reflected accelerated destocking and tighter supply conditions.
• The Polyester Tire Cords price forecast suggests continued upward pressure due to persistent feedstock cost increases and steady demand.
Why did the price of Polyester Tire Cords change in September 2025 in North America?
• Paraxylene and Ethylene prices surged in Q3 2025, significantly increasing Polyester Tire Cords production costs.
• US automotive sales strengthened in Q3 2025, boosting Polyester Tire Cords demand.
• Shrinking raw material inventories in Q3 2025 indicated tighter supply, contributing to higher prices.
APAC
• In China, the Polyester Tire Cords Price Index fell quarter-over-quarter in Q3 2025, driven by weak industrial demand and declining feedstock costs.
• Production costs experienced downward pressure in Q3 2025, as Naphtha and PTA feedstock costs declined.
• Ethylene Glycol (EG) feedstock costs weakened and fluctuated widely in China during Q3 2025, contributing to lower expenses.
• Polyester Tire Cords demand faced headwinds from a contracting Manufacturing Index in September 2025.
• A -0.3% CPI and -2.3% PPI in September 2025 indicated weak consumer purchasing power and industrial demand.
• Rising Paraxylene and MEG port inventories in China during Q3 2025 signaled oversupply, impacting market balance.
• China's chemical capacity expansion in 2025 contributed to persistent overcapacity challenges in Q3 2025.
• The 5.2% unemployment rate and low consumer confidence (89.6 index) in September 2025 dampened consumer spending.
• Despite robust automotive vehicle sales and 6.5% industrial production growth in Q3 2025, overall demand remained soft.
Why did the price of Polyester Tire Cords change in September 2025 in APAC?
• Weak industrial demand, evidenced by a -2.3% PPI in September 2025, pressured Polyester Tire Cords prices.
• Contracting Manufacturing Index in September 2025 indicated a slowdown in industrial activity, reducing demand.
• Declining Naphtha and PTA feedstock costs in Q3 2025 reduced production expenses, influencing price trends.
Europe
• In Germany, the Polyester Tire Cords Price Index faced downward pressure in Q3 2025, driven by weak demand.
• Production costs were mixed, with lower energy prices (PPI -1.7% in September 2025) and climbing paraxylene.
• Demand weakened from contracting Manufacturing Index in Q3 2025 and industrial production falling 1.0% in September.
• Stable unemployment at 6.3% in September 2025 and CPI increasing 2.4% dampened consumer spending.
• Modest retail sales growth (0.2% in September 2025) and stabilizing consumer confidence offered slight demand support.
• Automotive sector signals fluctuated in Q3 2025, with August decline and September surge in production.
• German chemical production dropped in Q3 2025, with capacity utilization below profitability thresholds.
• Overall European chemical sector demand remained weak in Q3 2025, impacting Polyester Tire Cords margins.
Why did the price of Polyester Tire Cords change in September 2025 in Europe?
• Weak demand from contracting Manufacturing Index in Q3 2025 and industrial production decline.
• Production costs mixed; lower energy prices (PPI -1.7% in September 2025) offset by climbing paraxylene.
• Elevated inflation (CPI 2.4% in September 2025) and stable unemployment (6.3%) constrained consumer spending.
