For the Quarter Ending December 2024
North America
The North American textile industry faced persistent challenges in Q4 2024 due to weak demand, economic uncertainties, and external pressures such as inflation and shifting consumer spending patterns. The Polyester Staple Fiber (PSF) market saw a 5.7% price drop during the quarter, driven by low-cost imports from Asia and reduced feedstock costs like PTA, compounded by the ILA Port Strike and high freight charges that discouraged stockpiling.
Viscose Staple Fiber (VSF) prices declined by 5.4% during the quarter as weak apparel demand and inflationary pressures persisted, while an influx of cheap imports and high inventory levels further pressured the market. The Viscose Filament Yarn (VFY) market remained bearish as subdued demand from the apparel sector and stable domestic availability restrained prices, while cheap imports and weak downstream demand contributed to continuous price declines. Polypropylene Filament Yarn (PPFY) faced limited downstream demand due to inflation and competitive pricing from Asian imports, alongside sufficient domestic availability that kept prices under pressure.
Adipic Acid prices were stable with slight improvements, supported by seasonal demand from the holiday-driven textile sector, though weak activity and logistical challenges tempered gains. Caprolactam saw a marginal price decline during the quarter as subdued textile demand and hurricane-related supply chain disruptions restrained market performance, alongside cautious procurement amid political uncertainty.
APAC
During Q4 2024, the Asian Pacific region witnessed a decline across key products linked to the textile and apparel sectors, largely influenced by weak demand, oversupply, and subdued global economic conditions. Polyester Staple Fiber (PSF) faced bearish market trends, driven by high inventories and weak domestic and overseas demand, particularly from India, while fluctuating feedstock dynamics added pressure. Similarly, the Viscose Staple Fiber (VSF) market saw persistent declines due to oversupply and limited downstream yarn purchasing activity, as the textile sector grappled with seasonal slowdowns and cautious procurement. Caprolactam experienced weak momentum, with limited demand from textiles and other related sectors, compounded by logistical disruptions and destocking pressures. Adipic Acid was impacted by a global shift away from synthetic fibers and weaker feedstock dynamics, while Typhoon Kong-rey further delayed supply chains, keeping demand tepid. The Viscose Filament Yarn (VFY) market showed mixed trends; strong seasonal demand from fashion and apparel in November was offset by subdued activity in December due to destocking. Polypropylene Filament Yarn (PPFY) and Polyester Filament Yarn (PFY) markets experienced temporary demand surges driven by festive season requirements and thermal fabric needs, but overall trends remained negative due to oversupply and cautious downstream activities.
Europe
The European fiber and polymer markets experienced a challenging Q4 2024, marked by subdued demand, oversupply, and economic uncertainties, which notably impacted the textile and apparel sectors. Weak consumer sentiment and cautious spending patterns reduced procurement from the textile industry, while oversupply and competitive imports, particularly from Asia, further pressured markets. Polyester Staple Fiber (PSF) saw weak demand from textiles, exacerbated by high inventories and falling feedstock prices. Similarly, Viscose Staple Fiber (VSF) and Viscose Filament Yarn (VFY) faced muted demand from both apparel and paper industries, despite favorable energy costs. Polyester Filament Yarn (PFY) and Polypropylene Filament Yarn (PPFY) markets struggled with ample supply and limited procurement by downstream buyers, who focused on immediate needs while leveraging discounted offers. Caprolactam and Adipic Acid markets, closely tied to automotive and textile applications, grappled with reduced consumption, as sustainability trends and economic pressures dampened demand. Regulatory changes and inflationary concerns added to the cautious market environment, while logistical challenges like port congestion in Hamburg hindered supply chain efficiency. Throughout Q4, the textile and apparel sectors in Europe remained sluggish, driven by weak consumer sentiment, seasonal destocking, and limited recovery in key end-use markets, reflecting the broader economic uncertainties.
