For the Quarter Ending March 2025
North America
The North American Polypropylene Filament Yarn (PPFY) market displayed a mixed performance in Q1 2025, influenced by divergent movements in feedstock costs, production constraints, and evolving demand trends. Polypropylene (PP) feedstock prices experienced a steady climb throughout the quarter, primarily due to restricted output and escalating propylene prices. Major producers such as ExxonMobil and LyondellBasell implemented price increases, further intensifying upward pressure across the PP value chain. With production rates declining, tight supply conditions compelled suppliers to pass rising costs onto downstream buyers.
Demand trends shifted noticeably over the three months. January registered strong buying activity, supported by vibrant downstream sectors like textiles and home furnishings. Import costs rose sharply amid concerns of a potential East Coast port strike, prompting preemptive shipments and elevated freight expenses. February brought more balanced conditions, as demand held steady despite cold weather impacting local production. A resilient labor market underpinned textile sector activity, helping to maintain moderate procurement levels.
By March, however, market momentum weakened. Soft consumer sentiment, sluggish textile demand, and ample inventory curtailed buying interest. The normalization of freight rates and easing import costs, along with ongoing tariff uncertainties, added to buyer caution, resulting in a subdued finish to the quarter.
Europe
The European Polypropylene Filament Yarn (PPFY) market exhibited a bullish price trend throughout Q1 2025, fueled by robust demand and ongoing supply challenges. Polypropylene (PP), the primary feedstock, saw consistent price increases driven by limited production and tight supply. Maintenance turnarounds in Middle Eastern plants and reduced PP shipments from Asia contributed to restricted availability, while major producers such as LyondellBasell, ExxonMobil, SABIC, and Braskem raised prices accordingly. Additionally, low cracker run rates and unexpected outages at various European fluid catalytic cracker units further limited local PP output. This tight supply situation was compounded by logistical disruptions, including vessel delays and port congestion, which hampered spot trading and import flows.
Demand in January surged with a strong post-holiday rebound, bolstered by substantial orders from the textile sector and aggressive restocking by German manufacturers. Regional inventory shortages and logistical challenges, including vessel congestion and labor shortages, added further pressure to prices. February maintained this upward momentum, supported by steady procurement from downstream sectors, despite minor weather disruptions and container delays. However, in March, demand softened slightly due to weaker consumer sentiment, although ample inventories and sustained imports helped keep the market sentiment positive overall.
APAC
In Q1 2025, the Polypropylene Filament Yarn (PPFY) market in the APAC region, particularly India, witnessed a bullish price trend, underpinned by a confluence of favorable supply-demand dynamics, cost-side support, and trade policy tailwinds. Prices rose steadily across the quarter, climbing from INR 132,000/MT in January to INR 134,000/MT by March, reflecting robust market fundamentals. In January, prices surged due to tight supply conditions, constrained by raw material shortages and moderate production levels, even as demand grew from inventory replenishment and pre-seasonal stocking in the domestic textile sector. Government policies, such as increased import duties on knitted fabrics, further bolstered reliance on local PPFY. February saw prices stabilize amid steady inventory levels and resilient manufacturing, aided by declining intra-Asia freight rates, which eased cost pressures for import-reliant firms. Although Ramadan and fiscal-year-end liquidity issues briefly tempered demand, export optimism persisted due to evolving US trade relations. By March, ramped-up domestic operations, stable feedstock PP prices, and improved logistics efficiencies reinforced supply-side strength, while export demand surged as US buyers diverted sourcing away from China. India’s competitive tariff regime, government investment in textile modernization, and China Plus One strategies positioned it as a favored global supplier, sustaining bullish momentum in the PPFY market through the quarter.
For the Quarter Ending December 2024
North America
The Polypropylene Filament Yarn (PPFY) market in North America faced a consistent downturn throughout Q4 2024, impacted by tepid demand, macroeconomic uncertainties, and external market influences. In the early weeks of the quarter, the U.S. market struggled as demand from the textile and apparel industries softened due to rising inflation and shifting consumer priorities. Moreover, steady import activity from global suppliers kept market prices relatively stable, leaving little room for upward movement.
During the mid-quarter period, the market showed signs of stabilization with minor price adjustments. These adjustments were primarily attributed to rising import costs and tightening global supply. Despite these factors, the availability of PPFY in the domestic market remained sufficient, and downstream demand was steady but not strong enough to drive significant price increases.
By the end of the quarter, the market returned to a bearish trend, weighed down by limited buying activity, elevated stock levels, and the influx of competitively priced imports, particularly from Asia. The lack of robust demand from the textile sector, coupled with hesitant procurement behavior, contributed to an overall weak market sentiment, keeping prices under pressure.
Europe
The European Polypropylene Filament Yarn (PPFY) market experienced a steady decline in pricing throughout Q4 2024, driven by low demand, abundant supply, and economic challenges. Early in the quarter, falling production costs, coupled with high inventory levels, exerted downward pressure on prices. The subdued performance of industries, coupled with weak export opportunities, further contributed to the declining market trend. Despite stable energy prices and favorable inflation rates, demand remained insufficient to support price stability. As the quarter progressed, market conditions remained challenging. Demand from key downstream industries, such as apparel and home textiles, remained limited. Rising inflation and cautious consumer spending patterns weighed heavily on the market. Even with stable supply and efforts to balance inventories, weak market sentiment persisted, hindering any potential recovery in prices. Toward the close of the quarter, demand continued to weaken as downstream industries held off on procurement in anticipation of further price declines. Despite low production costs and steady supply, the combination of economic uncertainty and logistical hurdles further pressured prices. The German market, in particular, experienced heightened volatility, reflecting the broader struggles across the European region during this period.
APAC
The Polypropylene Filament Yarn (PPFY) market in the Asia-Pacific (APAC) region followed a mixed trend during Q4 2024, with an initial rise followed by a decline. In October, PPFY prices surged due to strong demand driven by the festive season, which was further supported by rising exports and stable feedstock prices. Manufacturing remained robust as inventory levels were processed steadily to meet heightened demand from the downstream textile sector. However, the positive momentum started to fade in November as feedstock prices softened, and demand from downstream industries weakened. The decline in global crude oil prices contributed to reduced production costs, but high imports and excess supply pressured prices down. In December, PPFY prices continued to decline marginally due to steady imports and competitive domestic production. Despite a moderate inflation rate, the market remained cautious, with downstream industries holding back on new orders due to previous inventory build-up and weak consumer sentiment. This combination of excess supply and limited demand led to the overall downward trend for PPFY prices throughout the quarter, despite a temporary spike earlier in the period.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American Polypropylene Filament Yarn (PPFY) market experienced a notable decline in prices, primarily driven by limited offtake from downstream sectors. The sluggish demand was evident across various industries, impacting overall market performance. This lack of consumption placed significant downward pressure on PPFY prices.
A crucial factor contributing to this decline was the substantial decrease in the feedstock prices of Polypropylene (PP). This quarter saw PP prices fall sharply due to oversupply and insufficient cost support from upstream feedstock. The combination of these elements created a challenging pricing environment for PPFY manufacturers.
Moreover, in anticipation of the hurricane season, regional traders had stocked up on ample inventory. However, this stockpiling led to an unexpected oversupply in the market, exacerbating the decline in prices. As a result, the overall market dynamics reflected a persistent downward trend in PPFY pricing throughout the quarter, as the effects of limited demand and excess inventory continued to shape the landscape in North America.
APAC
In Q3 2024, the pricing landscape for Polypropylene Filament Yarn (PPFY) in the APAC region exhibited a mixed trend influenced by several key factors. In the initial two months of the quarter, PPFY prices increased steadily, primarily due to supply disruptions caused by plant shutdowns and elevated freight charges. However, in the final month of the quarter, a noticeable decline in prices emerged, driven by lower feedstock costs and an oversupply resulting from high operational rates in anticipation of increased consumption levels. Throughout the quarter, demand for PPFY in the APAC region remained consistent, but fluctuations in feedstock prices and supply dynamics significantly impacted the overall pricing trend. India experienced the most pronounced price changes, recording a slight increase of 1% compared to the previous quarter. Seasonal trends, coupled with the correlation to global market conditions, further influenced price fluctuations. Nevertheless, PPFY prices fell by 10% relative to the same quarter last year. By the end of the quarter, the price for PPFY in India was noted at USD 1539/MT, reflecting the complex interplay of market factors during this period.
Europe
In Q3 2024, the European Polypropylene Filament Yarn (PPFY) market exhibited an upward pricing trend, driven primarily by limited inventory levels and tight supply conditions. Early in the quarter, several manufacturing units across Europe underwent maintenance shutdowns, which constrained production capacity. Despite this, demand from the downstream market remained moderate, preventing a sharper decline in prices. A significant factor influencing the PPFY market was the behavior of feedstock Polypropylene (PP) prices. Throughout the quarter, the inventory of feedstock PP was notably low in the region, exacerbated by reduced import levels from the Middle East. This scarcity of feedstock contributed to the upward pressure on PPFY prices as manufacturers struggled to maintain supply amid consistent demand. The combination of restricted inventory and tight supply dynamics established a favorable environment for price increases, with PPFY prices reflecting this trend throughout the quarter. As manufacturers navigated these challenges, the overall market conditions pointed towards a resilient response in the face of production constraints and fluctuating demand levels.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Polypropylene Filament Yarn (PPFY) market experienced a bullish trend in prices. This increase was primarily driven by higher feedstock polypropylene prices, which raised production costs. Additionally, the cost of importing PPFY from the Asian market surged due to elevated freight charges. These increased shipping costs were largely attributed to the Red Sea crisis, which disrupted major shipping routes and exacerbated logistical challenges.
On the demand side, the North American market saw moderate demand for PPFY. Although not experiencing a surge, the consistent demand was sufficient to maintain upward pressure on prices, particularly in the face of rising input costs and supply chain disruptions. The combination of higher production costs and increased import expenses created a constrained supply environment, contributing to the bullish price trend.
Conclusively, Q2 2024 saw a positive pricing trend for PPFY in North America, driven by a mix of higher raw material costs and increased logistical expenses. The stable demand, despite the challenges, helped sustain the market's momentum, reflecting a strong market resilience amidst global supply chain issues.
APAC
In Q2 2024, the Polypropylene Filament Yarn (PPFY) market in the Asia-Pacific (APAC) region experienced a noticeable downward trend in prices. This quarter was characterized by a combination of factors exerting bearish pressures on the market. Key influences included a persistent oversupply driven by heightened production capabilities amidst weakened demand from downstream textile sectors. Disruptions in global logistics, exacerbated by congestion at major ports, further complicated supply chain dynamics, affecting distribution efficiency. Additionally, geopolitical tensions and economic uncertainties curtailed international demand, leading to a notable decline in export volumes. Plant shutdowns and maintenance activities within the region also contributed to the market's instability, impacting production continuity and market sentiment.
Focusing on India, the market witnessed the most significant price fluctuations. The overall trend remained bearish, influenced by seasonal factors and reduced consumer spending power, further strained by inflated costs of living. The Indian market recorded a -4% price change compared to the previous quarter in 2024 and a -1% price comparison between the first and second halves of Q2 2024. This trend underscores the pervasive market challenges and declining consumer confidence. The diminishing demand was not offset by any substantial domestic festival-driven consumption, unlike previous periods. As a result, the quarter concluded with a PPFY price of USD 1535/MT Ex-Mumbai, reflecting a predominantly negative pricing environment.
Europe
In Q2 2024, the European Polypropylene Filament Yarn (PPFY) market experienced a bearish trend in prices. This decrease was primarily driven by lower feedstock polypropylene prices, which reduced production costs and exerted downward pressure on PPFY prices. The drop in feedstock costs was a significant factor in the overall reduction of PPFY prices during the quarter.
On the demand side, the market saw only moderate demand for PPFY. While not experiencing a significant downturn, the steady but unspectacular demand did little to counterbalance the effects of falling input costs. The combination of reduced feedstock prices and moderate demand contributed to the negative pricing trend.
Conclusively, Q2 2024 reflected a negative trend for PPFY prices in the European market. The primary driver of this trend was the decline in feedstock polypropylene costs, which led to lower production expenses and subsequently, reduced PPFY prices. The moderate demand did not significantly impact the bearish trend, highlighting the market's sensitivity to feedstock price fluctuations. The quarter ended with a predominantly negative outlook for PPFY prices in Europe, underscoring the impact of raw material costs and demand dynamics on market conditions.
