Nonwoven Fabric prices continued to exhibit a soft pricing environment in the Asian market during early 2025. While the market witnessed a marginal decline in the first half of January, price dynamics remained steady throughout the month. Key factors influencing this trend included abundant inventory levels, consistent production rates, and weak market dynamics for Polypropylene, the primary feedstock for Nonwoven Fabric.

Demand for Nonwoven Fabric remained subdued in the domestic market. Seasonal trends helped maintain stable consumption levels for woven bags used in fertilizers, cement, and rice packaging. However, a slight dip in demand was observed during the first ten days of January. Additionally, plastic weaving demand declined modestly due to reduced interest in stockpiling. As the Lunar New Year approached, business activity slowed, prompting inventory replenishment efforts. The gradual release of pre-holiday restocking demand provided a minor boost to consumption, though overall demand fluctuations persisted across various sectors. Overseas demand, however, saw a marginal increase in the first half of the month, supported by post-holiday restocking activities.

The domestic inventory of Nonwoven Fabric rose during this period, driven by heightened production as manufacturers anticipated operational disruptions during the Lunar New Year holidays. To counter potential shortages, manufacturers ramped up production, ensuring sufficient stock to meet any unexpected demand surges. This proactive approach contributed to an overall balance in market dynamics, preventing sharp fluctuations in Nonwoven Fabric prices.

Weak production costs further supported the prevailing price trend in the market. Polypropylene prices fluctuated and declined marginally on a weekly basis, significantly impacting overall market conditions. Throughout January, Polypropylene enterprises in China resumed operations and maintained stable production loads with a slight increase. As production levels gradually recovered, the country’s average weekly output improved, and PP shipments experienced a moderate uptick, reflecting steady market activity in the Nonwoven Fabric sector.

Analysts predict that demand for Nonwoven Fabric will remain subdued post-Lunar New Year holidays. Export-oriented shipments, including Nonwoven Fabric, may face fresh tariff challenges. In 2024, the U.S. reduced its imports of clothing and apparel accessories from China, although China still holds a dominant market position. This decline was counterbalanced by increasing imports from Southeast Asian countries such as Vietnam, Bangladesh, and India, which rely heavily on raw materials sourced from China. Meanwhile, demand growth in the emerging global trade markets continues to present promising opportunities for Nonwoven Fabric exports.

On the domestic front, China’s moderately loose fiscal policy is expected to support the Nonwoven Fabric market. Several consumption-boosting measures are anticipated in the near future, which could provide additional momentum for the industry. With government-backed initiatives aimed at strengthening domestic demand, the Nonwoven Fabric sector might witness some improvement in market conditions.