Asian Polyester Filament Yarn Exports Shrink to Europe and America During May 2023
- 28-Jun-2023 2:33 PM
- Journalist: Bob Duffler
According to the latest data from China customs, Polyester Filament Yarn (PFY) exports to Europe were down by 39% over April from China. However, India's textile and apparel exports declined by 12.2% year-on-year during May 2023. The main reason was the fall in demand in Europe and the American market.
A Delhi-based TT Limited said the negative growth has continued for almost a year. This is mainly due to the fall in demand from downstream apparel and textile industries. However, Europe is still facing inflation right now. In the US, the demand for the PFY value chain has declined, with inflation still excessive; most Federal Reserve officials expect to raise interest rates further this year.
According to a report by the Confederation of Indian Textile Industry (CITI), the textile and apparel sector registered a cumulative decline of 17% compared to the previous year. The decline proportion varied in both sectors, with textile export dropping by 16.4%, while apparel industries dropped by 18.2% in the first two months of 2023. The decline in the Indian export market was due to the decline in the textile demand from foreign countries.
Therefore, the proportion of exports to the European market decreased to 16% in May from 24% in April. The fall in the export of PFY to Europe was anticipated after the European Commission's announcement on May 12, 2023, to launch the second anti-dumping review investigation on high-tenacity yarns originating in China and the increase in the anti-dumping tariff in the final decision. As a result, PFY exports to the European region were significantly impacted, and in May, they decreased significantly.
Talking about Chinese export to neighboring nations like India, the export of Chinese PFY to India was high in May 2023, while the overall export of Indian and Chinese PFY collectively was low to the European as well American countries. In India, Exports of PFY almost doubled. Exports of PFY to India were up by 96% on the month and 75% on the year, respectively, hitting a historic high, mainly impacted by the Bureau of Indian Standards (BIS) certification in India.
Therefore, impacted by the anti-dumping tariff in Europe and BIS certificate in India, the export of PFY diverted in two different paths in the EU and Indian markets.
According to the ChemAnalyst database, there may be a reversal in the current situation, and the demand for PFY from the European as well as US markets, may improve from July onwards. Thus, there is hope for recovery in the export market.
