Reduced Demand for Non-Woven Fabric Causes a Collapse in Global Price Dynamics

The Non-Woven Fabric market has been undergoing a time of adjustment as the price of the product is being affected by demand fundamentals. Since downstream industries have cut back on their offtakes, there has been a decrease in global Non-Woven Fabric consumption as a whole. ChemAnalyst reports that Non-Woven Fabric prices decreased by 2.2% on the week ending 10th March 2023, settling at USD 1550/MT on a FOB Shanghai basis.

According to the reports, there was a significant increase in the consumption of Non-Woven Fabric during the pandemic period, with the global market more than doubling in size from $808.9 million to $1.6 billion in 2019–2020 due to the need for N95 face masks and Personal Protective Equipment (PPE). However, the report did not point out that this increase in consumption was not long-lasting and decreased as the pandemic threat subsided. In 2023, the overall volume will drop from a peak of 367,800 tonnes in 2020 to 253,500 tonnes.

As the Chinese holidays ended and the Covid policy was relaxed, production activity at the companies in the domestic market immediately resumed. Also, there are fewer supply-chain disputes now, which has boosted trade with foreign countries. At the same time, the market for protective garments, garment linings, interlinings, waddings, shoe linings, and synthetic leather textiles accounts for most of the end-user demand, along with encouraging inquiries from domestic markets. While domestic orders have decreased more than previously, there has also been a minor decrease in overseas orders.

However, according to the producers, the Non-Woven Fabric was manufactured on a large scale during the epidemic. However, when the COVID limits loosened, so did the need for masks and PPE declined, resulting in the product's widespread availability. In addition, they stated that the market for Non-Woven Fabrics is currently returning to more normal, pre-pandemic levels.

According to the ChemAnalyst forecast, "Poor end-user demand is projected to cause Non-Woven Fabric prices to further decline in the global market during the forthcoming week. Huge inventories and optimal unit operating rates will balance the pricing for Non-Woven Fabric in the interim."