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