Zhejiang, China: The production and sales of Polyester Staple Fibre declined by 27% on May 24th. According to the sources, high inventories, palled demand, and disrupted supply lowered the market for Polyester Staple Fibre in China.

In the first half of May 2022, the prices of Polyester Staple Fibre remained high due to tight supply and soaring feedstock amid the Russia-Ukraine war. But towards the third week of May, prices dropped owing to a decrease in demand from downstream industries.

The domestic Polyester Staple Fibre market moves in tandem with the downstream polyester industry and upstream Purified Terephthalic Acid and Mono-Ethylene Glycol values. The slowdown of the textile industry, which is a labour-intensive industry, has negatively influenced the overall market dynamics since the imposition of the lockdown. On the other hand, traders predicted that once China's textile mills ramp up production, the sector will thrive in the following month.

According to experts, the rising cost of crude oil has burdened the feedstock market, which is appealing to the market for recycled products as global brands shift to find sustainable products, foreseeing the growing awareness among consumers. Later, a Delhi-based trader also confirmed that the weaving industry could not pass on the increasing cost of raw materials. Therefore, higher raw material prices discouraged buyers from making a new purchase.

To overcome the high feedstock rates, Reliance Industries Limited also took the initiative to recycle PET bottles, converting them to Recron or Green Gold. Downstream textile industries can utilize this eco-friendly polyester staple fiber for making sleep products.

Polyester Staple Fibre market is expected to regain from end-May or early-June, as some of the production units have planned to start its unit from early June. Jiangyin Huahong Chemical Fibre Co., Ltd. Confirmed to restart its 560Kt/yr. unit, whereas Xinfengming planned to put a new line into operations, which may relieve the supply and contract the prices of Polyester Staple Fibre in China.

ChemAnalyst prediction states that the "Polyester Staple Fiber market may remain unchanged because of high inventories and soft inquiries. Further, the overstock of spring apparel caused by the epidemic has forced a few manufacturers to revise their profit margins which are anticipated to ease the market for Polyester Staple Fibre in the Asia-Pacific region.