For the Quarter Ending March 2023
North America
The price of Polypropylene Filament Yarn (PPFY) appears to have been erratic throughout the quarter, with a little fall in the middle of the period. It was noted that prices rose at the start of Q1 as a result of rising demand and a constrained supply of raw materials. The price of PPFY was also impacted by the rise in regional feedstock prices of Polypropylene. The market price of PPFY was also impacted by the decrease in demand and the hoarding of materials in warehouses. Prices typically decreased when a given material was abundant because of the excess supply. However, over the last month of Q1, it was seen that prices climbed steadily and slightly. Overall, the fluctuating price trend of PPFY in Q1 indicates that supply and demand in the market were changing.
APAC
The Polypropylene Filament Yarn (PPFY) market appears to have displayed a mixed pricing trend throughout the quarter, with prices rising for the most part and only falling in the middle of the month. The domestic feedstock Polypropylene factory was reported to be operating steadily throughout the quarter, and the market's spot supply was within normal limits. As a result, the increase in feedstock prices and the increase in restocking following the Spring Festival both influenced the price increases. The quarter also saw a temporary return to stability in demand from the downstream textile industries, while downstream procurement remained robust. Overall, the enthusiastic PPFY producers and the upbeat consumer mentality caused the prices to remain steady at USD 1640/MT Ex-Mumbai in February.
Europe
The Polypropylene Filament Yarn (PPFY) market during the first quarter of 2023 appeared that prices on the PPFY market fluctuated a little throughout the quarter. Early in the first quarter, it was reported that prices in Europe were increasing as a result of significant downstream textile industry demand. However, the reduced product prices seen in February suggested that demand from the home-textile sector had decreased, possibly due to modifications in customer preferences or alterations in market dynamics. Despite these fluctuations in demand, it was witnessed that the supply of upstream Polypropylene was adequate, and market participants remained optimistic about purchasing the material in bulk quantity. This suggested that the overall outlook for the PPFY market remained positive, despite the price fluctuations observed in the first quarter.
For the Quarter Ending December 2022
North America
The fourth quarter of 2022 saw a decrease in PPFY prices due to the local market's deteriorating outlook. The majority of weaving industries in the downstream sector were cautious while purchasing raw materials, and there was little trading or attention paid to demand. Orders on the domestic market kept declining, it was difficult to place new orders for the international market, and factory shipments slowed. Additionally, industries concentrated primarily on operational cuts as materials piled on the domestic market due to erratic demand. As a result, the price of Polypropylene feedstock decreased along with the decline in crude oil prices, which in turn contributed to the falling PPFY pricing.
APAC
The Asian Polypropylene Filament Yarn (PPFY) market shrank in the fourth quarter of 2022 due to weakened market sentiment. Declining demand expectations and rising supply were the main causes of the drop, and downstream industries were also under pressure. However, the domestic textile yarn business remained mostly constrained during the quarter due to lackluster buying and insufficient product production. Due to the huge levels of stockpiles that are now in place and the continued decline in polypropylene prices, market participants were adopting a wait-and-see attitude. As a result of the reduced Polymer rate and the declining demand from numerous downstream industries, including carpets, sportswear, and innerwear, PPFY prices were falling.
Europe
On the European coasts, the supply is being impacted by rising inflation rates. Trade services were affected by port congestion in the continent, particularly in Hamburg, which was caused by cargo bunching and cancellations as a result of strike activity. Furthermore, despite the fact that some players have been observed reluctantly raising stock levels in anticipation of an increase in demand during the quarter, PPFY demand is currently at a low level. However, a favorable purchasing environment and falling polymer costs led to a decline in PPFY prices in Europe. Due to the fall in European natural gas costs during the month of December, which also contributed to a false sense of security, natural gas prices were also considered to be relaxing.
For the Quarter Ending September 2022
North America
The third quarter saw a decline in the North American PPFY (Polypropylene Filament Yarn) market due to weak demand from the downstream Geo Textile Fabrics for manufacturing Filter Fabrics. The domestic PPFY market remained downward amidst adequate inventories and decreasing demand. Additionally, the price of feedstock polypropylene decreased, resulting in lower PPFY manufacturing costs. In the meantime, the product's price reduction on the domestic market was further supported by low-cost pressure and a sufficient supply flow. Also, Hurricane Ian's impact on Florida during the second half of Q3 disrupted production, but adequate stocks kept prices on the downtrend.
APAC
The Asian Polypropylene Filament Yarn (PPFY) market has been decreasing recently with bearish market sentiment. Downstream enterprises are mainly under pressure due to the rising supply alongside a weaker demand outlook. However, the domestic textile yarn industry remained largely suppressed throughout the week due to muted buying attitude and sufficient product manufacturing. Meanwhile, the current significant inventory levels and a further decrease in feedstock polypropylene costs have caused market participants to adopt a wait-and-see attitude. While a trader from Daman Poly thread Pvt. Ltd. reported that PPFY prices were declining due to the sinking Polymer rate and the declining demand from various downstream sectors such as carpets, sportswear, innerwear, and several other products. Therefore, the price for PPFY in the Indian market hovered around USD 1773/MT Ex-Mumbai during September.
Europe
Sufficient inventories, optimum production rate, and weakening market sentiments kept the market for PPFY dull throughout the quarter. Few traders even reported overflowing stockpiles, which had made them sell the product at discounted rates. PPFY (Polypropylene Filament Yarn) demand decreased from apparel, carpets, sportswear, and industrial yarns for technical textiles. Later as the energy crisis started in the European market, the market for PPFY started deteriorating. Also, consumer sentiments weakened, leading to a decline in the price throughout the quarter.
For the Quarter Ending June 2022
North America
In North America, Polypropylene Filament Yarn (PPFY) prices increased in the first half of Q2, which later started declining due to fluctuating feedstock Polypropylene prices. Compared to the previous quarter, North American supply conditions were more disrupted in this quarter. Manufacturers of polypropylene filament yarn (PPFY) were frantically searching for PP resins because the majority of polypropylene (PP) imports from South Korea and European countries were stuck due to disrupted supply, causing unavailability of material in the regional market. At the same time, downstream demand from the textile industry was balanced as consumers grew cautious as a consequence of the higher price of raw materials. As a result, the regional PPFY offers were supported by a tight supply, mild demand, and fluctuating raw materials.
APAC
Polypropylene Filament Yarn (PPFY) prices declined throughout the second quarter as demand for the product declined amidst rising cost pressure from its feedstock market. The inquiries from the Chinese players remained subdued due to the COVID-related restrictions across the region that dropped the sentiments of the domestic players. Demand from textile industries too dropped, aiding the reducing price trend of PPFY. In contrast, the raw material polypropylene market in India and the Southeast Asian region remained subdued, prevailing weaker market outlook this quarter. The overall supply fundamentals remain healthy, whereas the demand kept staggering downward, forcing the primary producers to reduce the offered quotations for PPFY in the Indian domestic market.
Europe
Due to the war between Russia and Ukraine in Europe, the Polypropylene Filament Yarn (PPFY) market witnessed an increment throughout the second quarter, owing to the shortage in raw material supply. At the onset of this quarter, Feedstock Polypropylene prices have been under pressure due to higher Crude oil prices. Further, the sturdy circumstance of the European buyers to procure Russian Oil cargoes from the black sea has coupled with the surged taxes at the Suez Canal, which provided additional cost support to the production of PPFY. Thus, soaring crude oil value contributed to the rising feedstock prices. Meanwhile, its demand from downstream Textile industries was strong to support price edging.
For the Quarter Ending March 2022
North America
Polypropylene Filament Yarn (PPFY) prices in North America rose throughout the first quarter due to rising feedstock Polypropylene prices. Supply conditions in North America remained disrupted compared to the previous quarter. With most Polypropylene (PP) going to the consumer durables sector, Polypropylene Filament Yarn (PPFY) manufacturers were heard scrambling for PP resins. The textile sector's downstream demand was balanced as buyers became cautious due to the high cost of raw materials. The regional PPFY offers were buoyed by limited supply and strong demand amidst high raw material costs. Thus, the price for PPFY settled at USD 2280/MT in March.
Asia Pacific
In APAC, Polypropylene Filament Yarn witnessed a hike in prices owing to the rising demand from the downstream textile industry. Polypropylene demand remained high in the carpet sector due to its lightweight and cost-efficient properties. Polypropylene filament yarn also rose in the Chinese market due to the increasing raw material Polypropylene. The demand was seen as stable because of the supply disruption caused due to the Russia-Ukraine war which consequently affected logistics. Therefore, prices for Polypropylene filament yarn in the Asia-pacific region rose and settled at USD 2088/MT Ex-Location.
Europe
Driven by the war-like situation, prices for Polypropylene Filament Yarn in Europe rose on the back of rising crude oil prices. The crude oil futures rose to its highest value in the past seven years affecting the downstream production of its derivative. Later, in the second half of Q1, the Russian war on Ukraine affected the market sentiment of all crude derivative products and caused supply disruption. There was port congestion and high freight which adversely affected the supply of the product to the international market making prices to settle at USD 2200/MT in Q1.
For Quarter Ending December 2021
North America
The downward trend of upstream Polypropylene in the American market is the result of an abundant supply of upstream Propylene from Canada, and it reflects on the price trend of PPFY in the last Quarter of 2021. The shutting down of more than 100 textile industries in America in 2021 shows the struggle of that sector to recover and this leads to the decline of demand in those industries. PPFY being majorly used in the Textile Industry had significantly low demand in the American market between October-November 2021 timeframe leading to the declining price trend. Thus, post witnessing market dullness for prolonged period amid ample availability, PPFY price maintained overall stability during the Q4 2021.
APAC
There was a continuous deflation of the upstream polypropylene (PP) prices in the final quarter of 2021 in China which led to a dip in prices of PPFY in December 2021. Despite the lower prices of upstream PP, the Production of coal-based PP was limited by the country’s new scheme to reduce the carbon impact on its economy, so to meet the demand of the downstream Textile industry the prices of PPFY inflated between October – November 2021. Meanwhile, in India, the trend is remarkably like the trend in China but the reason of the increased prices in India was highly impacted by the high increase in demand from the downstream Textile industry due to the festive season and the prices assessed around USD 2012/ MT in December due to high inventory and low demand post festive season in the downstream textile industry.
EUROPE
In Germany, the price of the upstream propylene gas was on a downward trend due to adequate supply from the Netherlands, and low demand from most of the polymers in the German market. Enough supply of upstream and low demand in the last quarter of 2021 in Germany supports the declining trend of the PPFY in the German market. The European market was able to keep the prices of polymers from spiraling up in the last quarter of 2021 due to improving the regional manufacturing and increasing in local capacities instead of depending on imports which contributes to the downward trend of PPFY in Europe.
For the Quarter Ending September 2021
North America
Supply conditions in the North American region improved compared to the previous quarter but continued material tightness was seen due to limited stocks of the raw material PP in the regional market. With majority of PP being diverted towards the consumer durables sector, some PPFY producers were heard scrambling for PP resins. Demand from the downstream textile sector was balanced as the buyers were reluctant to procure the raw material at surged cost. The downstream demand from textile sector was balanced, as purchasers became cautious over the high cost of raw materials. The regional PPFY offers were buoyed up by limited supply and strong demand due to high-cost feedstock.
Asia Pacific
Chinese PPFY market observed a negative impact due to rising inflation rates as surges in upstream Propylene pushed up the production cost of several PPFY manufacturers in China. Whereas the Indian manufacturing units were badly impacted after the second COVID wave restricted the commercial and market activities. Pressured under demand slowdown, PPFY prices traversed downward trajectory in India with Ex-works discussions settling at USD 1686 per tonne at the start of Q2. PPFY exports have been rebounding since July, as pandemic restrictions were eased by the government of India. Indian manufacturers observed hike in raw material prices, as consistent economic recovery pushed up the consumption. In addition, Indian government were tried to control steep price escalation of several fibers, as it was denting the downstream user’s margin. Thus, PPFY price rose significantly and revolved INR 145650/MT Ex-Depot Mumbai.
Europe
The supply conditions throughout the European region improved in comparison to the previous quarter, however tightness persisted in the European market amidst limited availability of the key raw materials. Due to the turnaround in several PDH units, key refineries curtailed the availability of the raw materials which impacted the production of PP-derived synthetic yarns. Several European buyers sought for the Asian cargoes in anticipation of better netbacks. Pricing trend remained upwards as suppliers preferred to transfer high-upstream costs to the end consumers.
For the Quarter Ending June 2021
North America
Supply conditions in the North American region improved compared to the previous quarter but continued material tightness was seen due to limited stocks of the raw material PP in the regional market. With majority of PP being diverted towards the consumer durables sector, some PPFY producers were heard scrambling for PP resins. Demand from the downstream textile sector was balanced as the buyers were reluctant to procure the raw material at surged cost. Limited supply with firm demand on back of high-cost feedstock propped up the regional PPFY offers in Q2 2021.
Asia Pacific
During the second quarter of 2021, the supplies of PPFY in the Asia Pacific region observed an improvement as inventory levels were ample to cope up with the end use demand from the downstream textile industries. However, the Chinese PPFY market observed a negative impact due to rising inflation rates as surges in upstream Propylene pushed up the production cost of several PPFY manufacturers in China. Whereas the Indian manufacturing units were badly impacted after the second COVID wave restricted the commercial and market activities. Pressured under demand slowdown, PPFY prices traversed downward trajectory in India with Ex-works discussions settling at USD 1686 per tonne at the start of Q2.
Europe
The supply conditions throughout the European region, improved comparatively to the previous quarter, however tightness persisted in the European market amidst limited availability of the key raw materials. Due to the turnaround in several PDH units and key refineries curtailed the availability of the raw material impacted the production of PP-derived synthetic yarns. Several European buyers sought for the Asian cargoes in anticipation of better netbacks. The pricing trend remained upwards as suppliers preferred to transfer high-upstream costs to the end consumers.
For the Quarter Ending March 2021
North America
In the first quarter of 2021, the inventories of Polypropylene Filament Yarn (PPFY) were tight as they were bound with the offtakes margin to produce essential commodities such as surgical mask, PPE kits etc. Various petrochemicals production unit shutdowns including several major producers such as Lyondell Basell, INEOS olefins and polymers amid deep freeze weather. The prices witnessed multifold surge during the quarter where traders became more flexible towards procurement from the Asian suppliers amid the hiked prices throughout the region.
Asia-Pacific (APAC)
During the first quarter of 2021, supplies were balanced throughout the region, owned to the growth in regional capacities as China commissioned four new plants including CNOOC and Shell JV. Whereas various Asian suppliers diverted their cargoes to cater the demand of western region in anticipation for better netbacks. The demand surged from the downstream markets as the resurgence of COVID in several parts in India hiked the offtakes of PPFY to manufacture PPE Kits and surgical mask. In India, Ex-depot prices of PPFY were assessed at USD 1774 per tonne in February.
Europe
The European regional PPFY market witnessed constraint supplies during the first quarter of 2021, as a repercussion of the shortage in feedstock Propylene. The regional upstream production slumped amid limited commercial and industrial activities and transportation hiccups in the northwestern European region. On the other hand, offtakes were constant from the downstream textile sector to manufacture PPE Kits and surgical mask. Thus, the triple digit hike on the prices of polypropylene proportionally hiked the prices of its derivative PPFY.
For the Quarter Ending December 2020
North America
Supply of feedstock Propylene remained feeble throughout amidst force majeure declared on some of the Propylene plant in Q4 following the spate of hurricanes in the Gulf region. Their demand for Polypropylene Filament Yarn firmed in Q4, as the consumption increased from manufacturing sector amidst the revival in market activities in the region. Furthermore, extreme winter season witnessed by the end of December also assisted in propelling its demand clothing segment.
Asia
Shortage of feedstock Propylene across Asia compelled some of the producers in the northeast Asia to reduce their operating rates at polypropylene polymerization facilities. A leading Polypropylene player in Northeast Asia remarked that they had no choice but to shut their plants temporarily for a week amid lack of feedstock availability in the region. As the demand in Q4 witnessed marginal improvement, after suffering from weak sales or most of the year, its prices also climbed to record breaking heights in the final quarter. Restocking for the winter season demand led to the further improvement in the demand fundamentals of the Propylene Filament Yarn. Freezing temperatures during winter in several parts of Asia it also supporting in increasing the sales of winter apparels thus and pushing the demand the Polypropylene Filament Yarn demand.
Europe
Polypropylene supply in Q4 was tight, largely because strict availability for feedstock Propylene across the globe amidst increased downstream demand. Because of the increased downstream demand many buyers anticipated that the feedstock cost will rise again in January, due to the early restocking. Poly Propylene filament yarn buying interests from various downstream sectors, especially from rope industry and container bag segment considerably picked up in Q4 2020. Fibers, yarns, and filaments performed well in Q4 amidst a viable increment in their demand from packing industry as well.
