January 2025 saw varied price trends for Polyester Staple Fiber (PSF) across different global markets, driven by a mix of factors such as supply and demand dynamics, production costs, and market conditions.

In the US, PSF prices remained stable during the early part of the month, supported by balanced supply-demand dynamics. Ample inventory levels in the domestic market and subdued demand contributed to the stability. However, by January 17, PSF prices saw a slight rise of 1.82%, primarily due to increasing import costs.

A tight supply of PSF, along with rising production costs, contributed to this price increase during the period. Demand from downstream markets remained steady, with no significant new orders reported. Additionally, the prices for feedstock PTA remained unchanged, while MEG rose by 2.07%, impacting on the overall cost of PSF production.

In Europe, the PSF market also showed an upward trend, with prices for feedstocks rising by 2.6%, particularly in Germany, during the week ending January 17. This increase was largely attributed to early stocking activities by downstream markets following the holiday period.

During the winter season, demand for PSF remained positive, driven by its use in filling materials, carpets, and home textiles. The rise in PSF prices was further supported by an increase in import costs, as Chinese exporters adjusted prices amid surging feedstock costs and tight PSF availability within the region.

This created an upward pressure on prices in Europe, reflecting broader market trends. The rise in PSF prices also signaled the growing strain on supply chains across regions, contributing to a broader global trend of rising PSF prices.

In the Asia-Pacific (APAC) market, PSF prices followed a steady trend at the beginning of January, with demand levels remaining limited and costs holding steady. However, by the week ending January 17, PSF prices rose by 1.84%, particularly in China. This increase was largely driven by the rise in PTA spot market prices, influenced by rising crude oil prices.

On the supply side, some manufacturing units resumed operations after planned maintenance shutdowns, while others continued to be under maintenance, tightening PSF supply. Despite adequate spot market supply and stable industry operating rates, reduced self-supply and increased maintenance of PSF production equipment contributed to tighter supply liquidity.

Terminal demand in the APAC region remained focused on essential procurement. With the Spring Festival approaching, holiday maintenance plans further reduced terminal loom operating rates, further limiting the availability of PSF.