For the Quarter Ending March 2024
North America
The first quarter of 2024 has been characterized by increasing prices for Polyester Filament Yarn (PFY) in the North America region. Several factors have contributed to this trend. Firstly, there has been a general increase in production costs in the exporting countries, mainly due to rising prices of feedstock materials such as MEG and PTA. This has led to higher prices for PFY in the market.
Additionally, the severe drought conditions in the Panama Canal have caused congestions in shipping routes, resulting in increased freight charges. This has further added to the overall cost of importing PFY into the North America region. In the United States specifically, the price changes have been the most significant. The overall trend has been one of increasing prices, with the first quarter of 2024 seeing a 7% increase compared to the previous quarter. Furthermore, there has been a 1% increase in prices compared to the same quarter last year.
Within the first quarter of 2024, there has been a slight decline in prices during the second half of the quarter, recording a 5% decrease compared to the first half. The latest quarter-ending price for PFY in the USA is USD 1470/MT of Polyester Filament Yarn 150D/48F CFR Texas. Overall, the pricing environment for PFY in the North America region has been positive, with increasing prices driven by higher production costs and increased freight charges.
Asia
The first quarter of 2024 has been challenging for Polyester Filament Yarn (PFY) in the APAC region, with market prices experiencing a significant decrease. Several factors have influenced this downward trend in PFY prices. Firstly, the global market for PFY has been bearish, with prices declining due to low demand from the downstream textile industry and seasonal changes. Additionally, the Indian PFY market has been influenced by developments in China, its major importer of PFY. In China specifically, prices of PFY have remained overall stable, but there have been fluctuations due to the depreciation of feedstock prices, such as MEG. PFY production increased, but sales did not meet expectations, leading to high stock levels. Demand from the textile industry was moderate, and the recovery rate of terminal texturing and weaving operations were low. In terms of overall trends, PFY prices in the APAC region had seen a significant decrease compared to the same quarter last year, with a decline of 13%. Compared to the previous quarter in 2024, prices were decreased by 8%. Furthermore, there was a 4% decrease in prices between the first and second half of the quarter. As of the end of the quarter, the price of PFY in China was recorded at USD 1040/MT. The pricing environment for PFY in the APAC region has been negative, with prices consistently decreasing throughout the quarter.
Europe
The first quarter of 2024 has seen a significant increase in prices for Polyester Filament Yarn (PFY) in the Europe region. Several factors have influenced this upward trend, including rising production costs in key exporting countries, limited supplies, and disruptions in trade routes. Germany has experienced the maximum price changes. Overall, the pricing environment for PFY in Q1 2024 has been positive, with prices increasing by 2% compared to the same quarter last year. The quarter-on-quarter increase is even more pronounced, at 8%. However, there has been a slight decline in prices between the first and second half of the quarter, with a decrease of 4%. Germany, being a major market for PFY, has witnessed the impact of these price changes. The country has experienced a stable market situation, with moderate supply levels and moderate to high demand from the downstream textile industry. The prices of PFY in Germany have gradually increased throughout the quarter, reaching USD 1360/MT of PFY 150D/48F CFR Hamburg by the end of the quarter. These price changes can be attributed to various factors, including rising production costs, limited supplies, disruptions in trade routes, and seasonal changes in demand. It is important to note that the pricing environment has been consistently increasing, reflecting the prevailing market conditions in the Europe region for PFY.
For the Quarter Ending December 2023
North America
Polyester Filament Yarn (PFY) prices in the North American region experienced a downturn during the fourth quarter of 2023, attributable to a convergence of factors. A significant contributor to this decline was the global economic slowdown, resulting in reduced demand from the downstream textile industry.
In the USA, the supply of PFY expanded due to fluctuations in demand, inflationary pressures, and the country's import-centric nature, creating a bearish market scenario characterized by high supply. Compounding the situation, congestion in the Panama Canal port disrupted global supply chains, leading to escalated shipping costs for goods, including PFY. This disruption is evident in the bullish trend observed in PFY prices. The international outlook for PFY indicates a sustained low, marked by heightened overcapacity and intensified market competition, contributing to the prevailing downtrend expected in the coming weeks. Furthermore, an anticipated increase in feedstock PTA prices is likely to impact production costs, exerting additional pressure on PFY prices.
Analyzing the trend and seasonality of PFY in the USA, the market exhibited a bearish stance, with a 2% decline in prices compared to the same quarter of the previous year. There was a 1% increase in price from the current quarter to the preceding one, and no notable percentage change in prices between the first and second half of the quarter. As of the quarter's conclusion, the latest price for PFY 150D/48F CFR Texas in the USA stands at USD 1387/MT.
APAC
The APAC region's Polyester Filament Yarn (PFY) market exhibited a nuanced performance during the fourth quarter of 2023, characterized by alternating bullish and bearish phases. The initial decline stemmed from diminished demand originating from the downstream textile industry in the importing European and North American markets. This resulted in a moderation of PFY prices as purchasing activities remained subdued. However, a subsequent market resurgence occurred, driven by robust demand from lining fabric manufacturers, an increased uptake in sales of downstream warp-knitted velvet fabrics, and a surge in orders for circular-knitted imitation super-soft fabric. The market's dynamics were further influenced by weak demand during the traditional shipping season, prompting major container transportation companies to announce substantial rate reductions post the conclusion of the peak festive season in the importing Southeast Asian markets, thereby contributing to a reduction in prices. The shutdown of Fujia Dahua Petrochemical's Paraxylene plant in Dalian, China, with a capacity of 1.4 million mt/year, added an additional layer of volatility to the market. Towards the conclusion of the last quarter of 2023, PFY prices were assessed at USD 1131/MT FOB Shanghai.
Europe
The European region encountered challenges in the Polyester Filament Yarn (PFY) market during the current quarter (Q4) of 2023, influenced by several noteworthy factors. Chief among these were low demand, abundant supply, and heightened production costs. The global economic slowdown, coupled with evolving consumer preferences favoring sustainable products, further contributed to the subdued demand. In Germany, the PFY market witnessed a bearish trend attributed to an influx of imports from China, a decline in raw material prices, and diminished demand from downstream textile players. The anticipated trend for the current quarter in Germany is expected to maintain a bearish trajectory, with a projected -1.4% decline in price, settling at USD 1277/MT for Polyester Filament Yarn 150D/48F CFR Hamburg. Notably, there were no plant shutdowns during this quarter, and the price percentage comparison between the first and second halves of the quarter registered at -2%. In summary, the prevailing bearish trend in PFY pricing in Germany can be attributed to a confluence of factors, including surplus supply, weak demand, and the global economic slowdown. This trend is anticipated to persist in the forthcoming weeks.
For the Quarter Ending September 2023
North America
During the third quarter, the Polyester Filament Yarn (PFY) market in the US experienced unlike fluctuations, where the price trend declined in the first half of the third quarter while rebounded in the next half due to excessive procurement of PFY from the downstream textile industry. During July, inflation and recessionary fear had a negative impact on consumer spending, which in turn decreased the demand for PFY, as consumers tried to save money amid the uncertainty in the market. However, in the early stages of August 2023, a minor uptick was observed in the prices of PFY due to a low supply from key exporting nations including China. This shortage in supply was primarily attributed to China's ongoing struggles with extreme weather conditions and natural calamities, leading to disruptions in logistics and congestion at its ports. Likewise, enough inventories were not maintained during September which flooded the market with new orders to cater to the high demand for PFY within the USA even by paying higher prices during this timeframe.
Asia
During the third quarter, the Polyester Filament Yarn (PFY) market in Asia saw significant price fluctuations, with prices falling in the first half of the quarter and rallying in the second half amid the supply curtailment in the domestic market of China. During July, PFY sales in the Chinese local market slowed down with the traditional slack season amid a drop in production cost. Moreover, the price for feedstock Purified Terephthalic Acid (PTA) and Mono-Ethylene Glycol (MEG) was low, easing the cost of production. As a ripple effect, less cost pressure from the production unit decreased the prices of PFY in China during this period. However, adverse weather conditions caused by typhoons impacted logistics in certain regions of South China and East China, consequently causing a reduction in overall inventories during August. Additionally, the supply of Paraxylene, a key raw material for polyester, has remained tight in China due to lower operating rates of PX units which has further contributed to showcasing a bullish trend during September.
Europe
The German Polyester Filament Yarn (PFY) market in the third quarter of 2023 saw mixed price movements, with prices falling in the first half and recovering in the second half. Considering the low demand and smooth product availability, the manufacturers in the region were mulling over the production cuts during July, as indicated by the declining German manufacturing activity due to which the market for PFY opened on a softer note, amid a lull demand from downstream textile sector. However, in early August 2023, there was a slight increase in the prices of PFY due to limited supply from major exporting countries like China which were particularly affected by a typhoon during this period, impacting their operations. Additionally, low inventory levels have led to a surge in new orders, even at higher prices, as buyers in Germany are willing to pay more to meet current demand. Alongside, the extension of the production cut cycle by oil-producing countries led to higher prices for polyester raw materials, including paraxylene and PTA which further put upward pressure on PFY prices during September.
For the Quarter Ending June 2023
North America
In North America, the PFY (Polyester Filament Yarn) market followed a similar trend as the APAC region, experiencing mixed price movements throughout the second quarter of 2023. Initially, PFY prices increased in the first half of the quarter due to high demand in the region. However, prices later declined for two consecutive months due to factors such as high inventories and low consumer demand. The US market also faced inflationary pressure, which constrained consumer spending on clothing items. Therefore, because of the low demand from consumers and high inventory levels, producers in the region decreased their manufacturing activity. A data from FRED indicated that the production price index of the US market decreased to 245.83 in June, while logistics were operating smoothly. Overall, demand was low, inventories was great, and the operating rate of units were optimum supporting the downtrend in the PFY market. Finally, the price for PFY 150D/48F declined and settled at approximately USD 1393/MT CFR Texas during June 2023.
APAC
In the APAC region, the Polyester Filament Yarn (PFY) market experienced a mixed and fluctuating trend throughout the second quarter of 2023. Prices initially surged in the first month of the quarter, but they declined in the subsequent two months due to sluggish demand from downstream industries. This, in turn, caused a decrease in the operating rate of weaving in the Jiangsu and Zhejiang regions. Additionally, weak foreign demand for textiles further impacted the market. Toward the end of the second quarter, PFY sales in the local Chinese market slowed down due to the traditional slack season and a drop in production costs. The prices of feedstock materials, Purified Terephthalic Acid (PTA), and Mono-Ethylene Glycol (MEG), declined, easing the cost of production. However, traders and end-use producers were concerned about increasing stocks, which led to reduced enthusiasm for material procurement. Furthermore, export demand from the US also declined, influenced by the high risk of a global recession, which further weighed on the export market. Throughout most of the second quarter, sentiments surrounding PFY 150D/48F remained weak, with prices staying at approximately USD 1146/MT FOB Shanghai in June 2023.
Europe
In Europe, the Polyester Filament Yarn (PFY) market mirrored the Asian market with fluctuating prices throughout the second quarter of 2023. Prices initially increased but later dropped for two consecutive months. Analysts reported weaker demand during this period, but inventories were sufficient, ensuring a smooth supply chain. Furthermore, the European economy was facing challenges in reviving demand and regaining economic growth, as evidenced by the 0.9% decline in monthly producer prices in May. Annual inflation was also expected to decrease from 6.1% in May to 5.5% in June 2023, according to estimates from Eurostat, the statistical office of the European Union. Therefore, under the weight of inflation, consumer spending declined, putting further pressure on manufacturers in the region to lower their margins. As a result, manufacturers in the region were considering production cuts, due to the combination of low demand and ample product availability. This was further supported by the declining German manufacturing activity during June 2023. Overall, the PFY 150D/48F market remained mostly on the lower side during the second quarter, with prices around USD 1280/MT CFR Hamburg.
For the Quarter Ending March 2023
North America
Polyester Filament Yarn (PFY) market experienced some volatility during the first quarter of 2023. Initially, prices increased due to healthy purchasing activity from downstream industries. However, in the second half of the quarter, prices started to decrease due to large inventories and low offtakes from the downstream home textile sector. Despite producers allegedly having large inventories of material and possibly reducing their margins to initiate sales, the demand for PFY material from the downstream Knitting & weaving sector remained low. There was no improvement in demand, even after some relaxation in the prices. As a result, the market for PFY in the US remained volatile throughout the Q1 of 2023.
APAC
Polyester Filament Yarn (PFY) continued to rise in March 2023, hovering at around USD 1185/MT. During the Spring Festival holiday period, most of the industrial chain entered a holiday state, but some enterprises continued to produce during this time. Demand for PFY continued to increase from downstream industries such as Knitting & weaving, which used the material to make polyester fabrics for consumer products and home furnishing. However, despite the increase in demand, the PFY market was still affected by excessive inventories, poor profit recovery, and slow offtakes, which dampened excitement in the market in the second half. After the Spring Festival, operating rates of factories increased, but sluggish downstream demand led to a decline in PFY prices at the end of the first quarter.
Europe
Polyester Filament Yarn (PFY) experienced an uptrend in pricing during the first half of the quarter due to healthy demand from downstream textile industries. However, the beginning of the summer season appeared to have lowered demand, particularly from the downstream consumer fabrics and home textiles sector. Despite producers allegedly having large inventories of material and being willing to reduce their margins to start sales, demand for PFY from this sector remained inflexible and showed no signs of change in the near future. As a result, with the easing inflation rate, the German market for PFY 150D/48F seemed uninteresting at the end of the quarter.
For the Quarter Ending December 2022
North America
In America, production was severely disrupted as a result of Hurricane Ian's effects in the country's southern region, which reduced inventories. Sharply falling end-user demand was the direct incentive for the production curtailment in the PFY units. Meanwhile, congestion at the ports of Los Angeles was the major concern in shipping activity amidst a shortage of labor for loading and unloading of cargoes. The US textile industry was facing a decline in orders from its key markets as the country's textile and apparel association faced high inflation, which was dampening global demand. As demand decreased and work in the manufacturing sector shrank sharply, employment growth slowed.
APAC
The operating rate of downstream plants increased after a holiday, and downstream buyers increased replenishing PFY in the later part of the holiday. Stocks of PFY rose limitedly compared with the pre-holiday level. Feedstock PTA and MEG market also witnessed a decline in its rate, with manufacturers mainly witnessing sufficient stockpiles. The operating rate of downstream plants was diversified, with that of knitting plants higher than that of weaving mills. Downstream plants continued absorbing PFY prepared before in Zhejiang and Jiangsu. Good orders for velvet fabrics were mainly because buyers replenished for the autumn and winter home textiles and apparel and the procurement from Europe grew. The export orders for the blanket and electric blankets increased in Yiwu. The price of the products was temporarily down by 1.3%, with prices hovering around USD 1047/MT Ex-Zhejiang during November.
Europe
Polyester Filament Yarn prices dipped in Germany amid moderate buying sentiment and falling polyester chip costs during the week. The reduction in European natural gas prices for December has also created a false sense of security, and the prices for the commodity were observed to ease. Buyers were mostly seeking low-end values, and hence producers had to cut offers on poor confidence. The downstream knitting and weaving sector witnessed low offtakes for home furnishing materials like curtains, bed sheets, and bedspreads. Trade services on the continent were disrupted by port congestion, particularly in Hamburg, which was caused by cargo bunching and cancellations as a result of strike activity, causing the decline in the price for PFY.
For the Quarter Ending September 2022
North America
The worsening domestic demand brought on the decline in the price of Polyester Filament Yarn (PFY). The downstream industries were worried about buying raw materials looking forward to the weak demand and general market trade conditions. Additionally, materials were accumulating on the domestic market due to irregular demand, causing operational cuts. Along with the decline in crude oil prices, both feedstock costs for Mono-Ethylene Glycol (MEG) and Purified Terephthalic Acid (PTA) fell for a significant part of the third quarter. Later on, Hurricane Ian's effects in the country's southern region significantly interrupted output, which decreased inventories and caused a slight increase during September.
APAC
The price of Polyester Filament Yarn (PFY) dropped as supply estimated had increased due to the drop in upstream Purified Terephthalic Acid (PTA) prices in the first half of Q3. The weaving sector also had abundant raw materials, allowing them to operate their factory at their best efficiency. Later, severe drought and heat waves led to low water levels and a drop in hydroelectric power generation in China, causing power shortages and forcing the government to ration electricity in some provinces. This was accompanied by the impact of the coronavirus pandemic, causing strict lockdowns in China. Thus, the market outlook for PFY from its downstream consumer fabrics and home furnishings like curtains, bed sheets, bedspreads, and draperies was lower during July and August.
Europe
Polyester Filament Yarn (PFY) prices in Europe dropped for the first half of Q3, which later emerged as the energy crisis loomed over the European market. Earlier Feedstock Purified Terephthalic Acid (PTA) and Mono-Ethylene Glycol (MEG) prices were down, contributing to the lowering production cost. However, the global crisis, such as geopolitical uncertainty and Europe's embargo on Russian oil and gas imports, caused an energy crisis in the European market. Thus, commodity prices rose due to the high production cost. Meanwhile, demand for PFY was mild since consumers were reluctant to make large purchases in such an unpredictable market situation. Thus, the third quarter witnessed mixed market sentiments for PFY in the global market.
For the Quarter Ending June 2022
North America
In North America, Prices for Polyester Filament Yarn (PFY) followed the Chinese market, as China is the major exporter of this product. During the second quarter, Polyester Filament Yarn (PFY) prices rose in the US market due to the consistent trade disruption and challenges from China's market supply. Since the resurgence of Covid in China, the availability of the product started diminishing in the US local market, resulting in a hike in its rate. Meanwhile, demand from downstream home furnishing materials like curtains, bed sheets, bedspreads, and draperies remained robust. Further, EU sanctions on Russian oil led to a hike in oil prices, supported by the low inventories of Crude oil, which even pressurized its feedstock market Purified Terephthalic Acid (PTA) and Mono-Ethylene Glycol (MEG). Therefore, considering these factors, Polyester Filament Yarn (PFY) prices rose throughout the second quarter in the US market.
APAC
Polyester Filament Yarn (PFY) Prices increased throughout the second quarter with firming up raw material Purified Terephthalic Acid (PTA) and Mono-Ethylene Glycol (MEG) costs. The market was volatile, with high demand and sales. High Offtakes from downstream home furnishing like curtains, bed sheets, bedspreads, and draperies lifted the pricing of Polyester Filament Yarn this quarter. Furthermore, the total cost of polymer raw materials increased as oil prices remained volatile, the naphtha-Paraxylene-PTA chain climbed steadily, and MEG prices rose as fundamentals improved. Simultaneously, the Indian market also rose throughout the second quarter of 2022. This increment in price was mainly due to the volatile Crude Oil market value, which continued its upward rally following oil prices. Meanwhile, the price hike of yarn dyes and chemicals used in the textile industry prompted big domestic yarn spinners and manufacturers of these products to pass on the pressure to textile manufacturers.
Europe
Following the Asian market, Polyester Filament Yarn (PFY) prices increased in European countries by 2.6% in the second half of Q2. Due to a sharp increase in the cost of raw materials and high local demand, the price of Polyester Filament Yarn (PFY) significantly increased this quarter. Further, supported by the rise in the price of yarn dyes and chemicals used in the textile industry, domestic yarn spinners and producers of these goods felt pressurized, passing the load to the consumer. Meanwhile, demand from knitting & weaving to make polyester fabrics such as consumer fabrics and home furnishings like curtains, bed sheets, bedspreads, and draperies, boosted the prices to rally upward. Conclusively, the Polyester Filament Yarn market showcased a rising trend throughout the quarter in Europe.
For the Quarter Ending March 2022
North America
The PSF market showed mixed sentiments throughout Q1-2022, with demand increasing in the first and last month of the first quarter. Rise in prices of raw material Purified Terephthalic Acid cost and Mono-Ethylene glycol as crude oil prices rose, which triggered further growth in the PSF market. Later, due to the low production in Mexico, the United States dependency on Mexico limited the availability of the goods in the domestic market. Further, supply disruptions and port congestion with high transportation costs on goods export made it impossible to meet the demand in the domestic market, and therefore prices of polyester filament yarns in the North American region in the first quarter was firmed and were assessed at USD 1453 CFR Texas in February 2022.
Asia Pacific
After a period of low market sentiment, the Polyester Filament Yarn (PFY) market improved in the second half of Q1. Polyester Filament Yarn market in India experienced a steep rise in raw material costs, along with high demand from the domestic market. During the H2, the seasonal changes in India brought much-needed revival in demand for the textile industry, with manufacturers witnessing firm offtakes from the domestic market while input costs have been rising in the meantime. The manufacturer also increased their production cost along with the consistent increases in raw material costs, which forced them to pass this on to consumers. In conclusion, the prices of PFY increased significantly during the first quarter, settling around USD 1774/tonne Semi dull 110D 48F Ex-Silvassa in February. In China, the market was characterised by a mixed mood, with steady demand from the downstream industry.
Europe
The market for PFY in Europe has weakened in Q1 2022 affected by the shortage of raw material Purified Terephthalic Acid and Mono-Ethylene Glycol. Later, port congestion and high freight charges fuelled prices in the first half eroding market sentiment. It was observed that the consumers were hesitant to buy the product at a high price, resulted in a weak market for PFY in the second half as stocks were sufficient to meet domestic demand. However, with low demand amidst the disrupted supply caused by the conflict between the two countries led to the sluggish market sentiment, therefore the price for PFY 150D/48F in Europe settled at USD 1391 CFR Hamburg in February.
For the Quarter Ending December 2021
North America
Limited availability of feedstock PTA hampered production rates of downstream PFY. For PTA, USA heavily relies on exports from Mexico, however production disruption in Mexico exacerbated PTA supply dynamics in USA as well. Increased cost of raw materials and increasing cost of production culminated into consistent price spikes of PFY throughout the quarter. Feedstock MEG availability was robust throughout the quarter as upstream ethylene stabilized in Q4. Imports of PTA from Asia were unsustainable on the back of incessant rise in freight charges and shipping costs. Therefore, prices of PFY remained on an incessant rise throughout the quarter. In December, PFY prices were assessed at USD 1325 per MT.
APAC
Indian domestic PFY market started the Q4 on a strong note where on the back of festive season demand and soaring raw material cost, prices climbed to INR 138.5 per kg Ex- Silvassa. However, market sentiment deterred towards the second half of the quarter as demand for PFY stagnated while raw material prices stabilized. Consequently, prices dropped to INR 131.8 per kg Ex-Silvassa in December. In China, October witnessed a sharp increase in price stemming from demand push and rising cost of feedstock PTA due to skyrocketing crude oil prices. PFY Market stabilized towards H2 of Q4 owing to demand decline and stabilization in feedstock prices. In lieu of that manufacturers reached a consensus to reduce production rates by 20% in November. China PFY prices were stable at USD 1170 per MT on FOB basis in December.
Europe
PFY market in Europe was termed as lopsided throughout the last quarter as demand fundamentals remained strong while supply dynamics struggled due to curtailed production of PFY across the continent. Limited availability of feedstock PTA in Q4 culminated in declined production rate as PFY market witnessed strong competition from PET market in terms of PTA consumption. Feedstock MEG prices also remained strong due to inflationary pressure which further contributed towards increased prices of PFY. Imports of MEG and PTA were limited from Asia as resolutely high freight charges made imports uncompetitive and unsustainable. PFY prices were assessed at USD 1307 per MT in October.
For the Quarter Ending September 2021
North America
In Q3 2021, Polyester Filament Yarn (PFY) market outlook appeared to be bullish with robust demand and tight supply which pressured the prices to move northwards. Limited availability of the key feedstock stock PTA and MEG led to the hike in their prices that consequently elevated the PFY prices in this quarter. Moreover, the regulation of the antidumping duties on imported Polyester items further influenced the prices of PFY in the region in this timeframe. In addition, severe climate condition in the mid of the quarter impacted the production rates as well as disrupted the supply chains which also sent ripples to the prices of PFY in North America in Q3.
Asia Pacific
During the Q3 2021, the Polyester Filament Yarn market witnessed an uptrend in the Asia Pacific markets. In China, PFY market remained tightened due to the limited availability of the key feedstock PTA and MEG that resulted into the lower production of the Polyester Filament Yarn in the region. In India, an exponential rise in the prices of PFY was seen backed by the constrained supply and improvement in the demand fundamentals after the rebound in the industries as well as commercial activities in the region. Besides, the Indian government cleared the Production-Linked Incentive (PLI) scheme for the textile industry in September that provided optimism among the various niche players and hence boosted the PFY market during the quarter. Consequently, PFY prices have reached USD 1568.60 per MT Ex-Silvassa in September showcased a hike of USD 78/MT since July.
Europe
In Europe, Polyester Filament Yarn (PFY) market remained strong during the third quarter of 2021 backed by the firm demand of the downstream sectors after the resurgence in the industrial and the commercial activities. PFY prices in this time frame traced the upward trajectory due to the supply shortage as well as the hike in the raw materials. Moreover, continuing the path of previous quarters, Q3 also measured high freight charges and delayed imports which further influenced the pricing trend of PFY in the region.
For the Quarter Ending June 2021
North America
During the second quarter of 2021, supplies of the Polyester Filament Yarn (PFY) were restrained due to the limited availability of the key feedstocks PTA and MEG, as most of the available volumes were diverted to complete the piled-up backlog orders. US department of commerce started the antidumping probe on imports of Polyester yarn from Indonesia, Malaysia, Thailand, and Vietnam as the imported volumes were unfairly sold below their expected values in the domestic market. The demand was consistent from the downstream industries, as the mass vaccination programmes prompted better market movement in North American region.
Asia Pacific
In the Asia Pacific region, PFY supplies were constrained owing to the limited availability of the upstream PTA and MEG which impacted the production of the Polyester Filament Yarn. The situation was further exacerbated by the subdued market demand and restricted commercial movement in the South Asian market as the second COVID wave curtailed the industrial operations. China exported huge volumes of PFY cargoes to the US, throughout the second quarter. Overall, the market demand was balanced in the second quarter of 2021, led by strengthening export market, and rebound in the textile industries. However, slowdown in the Indian markets raised the inventory levels which surged the Ex-Works PFY prices settled at USD 861 per tonne in June.
Europe
The European Polyester Filament Yarn (PFY) market outlook remained subdued amidst short supply conditions due to the limited availability of upstream PTA and MEG. Imports from the US improved but buyers struggled to meet the end use demand. Furthermore, lack of feedstock availability from the manufacturing industries further constrained the manufacturing of PFY. Demand remained balanced and healthy from the downstream textile industries. Moving in accord with the demand trends, Polynt Composites surged the prices of Polyester Fibers by USD 352 per tonne in April.
For the Quarter Ending March 2021
North America
Supply of Polyester Filament Yarn (PFY) in the North American region remained tight, owing to the shortage of key feedstocks due to the high shipping freight cost. Although the Phthalic Anhydride (PA) plants operated normally without disruption despite the severe freezing weather in the USA Gulf region in February, but production hindrance occurred in upstream Diethylene Glycol (DEG) plants. Demand gradually improved with consistent increment in offtakes from the downstream textile industry. AOC Resins, a large-scale producer of product in the region, surged the prices of PFY exports to the European and Middle East region by +USD 362/MT, due to high shipping and packaging cost.
Asia-Pacific (APAC)
The Asian PFY market remained balanced due to tight supply and feeble demand during the first quarter of 2021. In February, IG Petrochemicals Ltd. announced plans to setup PA plant in Gujrat, the plant is will facilitate the production of UPR to boost the domestic textile sector. Moreover, Demand surged ahead of the Chinese lunar new year with improvement in the offtakes from the downstream textile industry. PFY prices in India remained stable throughout the quarter and averaged at USD 931 per MT for February deliveries. However, prices witnessed a downtrend trend by the quarter end due to the resurgence of COVID in several parts of the region.
Europe
The European region PFY market remained tight during the first quarter of 2021 backed by the reduced imports from the Asian region, due to Suez Canal blockage amid higher shipping freight cost. Extreme cold weather in the Northwest Europe further created the transportation hinderance and delayed the supplies of key feedstock. However, with deficit in availability of 2-EH, majority of PA were diverted towards PFY sector. Demand remained strong throughout the quarter due to better offtakes from the downstream automotive and construction sector.
For the Quarter Ending September 2020
Asia
Limited sales continued to hamper the Asian PFY market throughout July, but the overall demand rebounded entering the September month amid the peak festive season and boosted year-end sales. Seeing that complete revival might take longer than anticipated time, economies (like India) eyed on the relief packages provided by the government to revive the textile sector. Disruptions in the raw material supply chain further added to the producer’s worry. Offers were raised as China, the world's leading polyester producer reported improved operating rates on the back of rising export orders. However, the news of imposition antidumping duty over Chinese PFY by the Indian and Vietnamese governments kept the traded volumes relatively low. The news of a major Indian petrochemical player entering PFY production in the coming years kept the Indian markets in close proximity to the country’s ‘Make in India’ goal.
North America
The PFY industry remained deterred by constrained trade and macroeconomic fragility while the American textile industries remained cautious on account of rising COVID-19 cases in the several countries. The news of Hurricane Laura forcing several US polyester fiber units to shut their units in Bay Saint Louis and Mississippi, forced PFY players to stay non-operational for over a month. Major producers in the region reported subdued sales, struggling to transfer substantial gains observed in the feedstock Monoethylene Glycol (MEG) due to consistent material shortage. The news of several US producers filing petition in response to surging low-priced volumes of polyester yarns imports from Indonesia, Malaysia, Thailand, and Vietnam buzzed the U.S. markets.
Europe
The textile imports stayed muted during the quarter ending September as major European players were heard stocked with ample polyester yarn inventories. Production rates in the textile sector were heard pressured as some countries declared lockdowns to combat the second wave of infections which producers feared may affect the offtakes. PFY pries were heard tracing an uptrend aligning with the feedstock MEG and PTA. By the end of the third quarter, Europe was heard seeking more PFY volumes as the demand season began in the region.
