For the Quarter Ending September 2024
North America
In Q3 2024, the Polyester Filament Yarn (PFY) market in North America faced a notable decline in prices, indicative of a challenging pricing environment. Prices fell by 6% compared to the same quarter last year, driven by various factors. Declining demand, particularly due to off-season trends in the textile industry, led to oversupply and subsequent price drops. Additionally, maintenance turnarounds at key feedstock plants, such as PTA and MEG, increased production costs, negatively impacting PFY pricing.
The US market remained significantly oversupplied due to extensive destocking by Chinese PFY manufacturers. Despite increased freight costs—up 1% from East Asia to North Europe this week and 25% over the month—the oversupply persisted. Major Chinese producers, including Xin Feng Ming, TongKun, and Hengyi, aggressively discounted PFY to offload excess inventory, reflecting weak downstream demand. Prices were reduced by Yuan 200-350 per metric ton, consistent with the downward trend. In contrast, supplies of polyester yarn were sharply curtailed due to declining operating rates at polyester plants, now around 85.8%, down from 86.2% the previous week and significantly lower than the 93%-94% range seen in July 2023. Typhoon Gaemi further complicated logistics and transportation, while feedstock prices, particularly PTA, fell by about 2.5%. Focusing on the USA, the market recorded a 2% decline from the previous quarter and a 6% drop between the first and second halves of Q3.
The quarter-ending price for Polyester Filament Yarn 150D/48F CFR Texas stood at USD 1,360/MT, underscoring the prevailing bearish sentiment and challenging dynamics in the market.
Europe
In Q3 2024, Polyester Filament Yarn (PFY) prices in Europe experienced a consistent decline due to several key factors. Oversupply in the market, driven by reduced demand in the downstream textile industry, played a significant role in this trend. Additionally, ongoing maintenance at key PTA and MEG plants increased production costs, further pressuring PFY prices downward. Seasonal off-peak demand also negatively impacted market sentiment. The European market saw price depreciation throughout the quarter, largely influenced by improved supply conditions. The German PFY market, heavily reliant on imports from China, felt the effects of price reductions initiated by major Chinese producers like Xin Feng Ming, TongKun, and Hengyi, who aimed to clear excess inventories. In early August, these manufacturers reduced PFY prices by approximately Yuan 200-350 per metric ton, which became evident by mid-August.
Production costs for PFY were not bolstered, as feedstock PTA prices dropped by about 4% in early 2024 due to abundant supplies. In Germany, prices decreased by 2% year-on-year and by 1% from the previous quarter, with a notable 7% drop between the first and second halves of the quarter. The quarter-ending price for PFY in Germany reached USD 1,300/MT, highlighting the prevailing downward trend in the market.
APAC
In Q3 2024, the Polyester Filament Yarn (PFY) market in the APAC region experienced a notable decline in prices, primarily driven by several key factors. China, in particular, saw the most significant price changes, reflecting an overall negative sentiment in the region. Seasonal factors, such as off-season demand and reduced manufacturing activities, contributed to the steady price drop, resulting in a challenging pricing environment for PFY. Excess supplies were prevalent, as major polyester producers in China sought to clear out inventories by offering discounts and promotions. Leading manufacturers, including Xin Feng Ming, TongKun, and Hengyi, reduced PFY prices by Yuan 200-350/MT, corroborating the downward trend in the market. However, supplies of polyester yarn were curtailed as operating rates at polyester plants continued to decline due to sluggish profit margins. When comparing prices to the same quarter last year, there was a substantial decrease of 22%. The quarter-on-quarter change for 2024 also recorded a 3% decline, while the price comparison between the first and second halves of the quarter indicated a significant drop of 9%. By the end of the quarter, the price of Polyester Filament Yarn 150D/48F FOB Shanghai in China settled at USD 935/MT, highlighting the prevailing negative pricing environment in the APAC region.
For the Quarter Ending June 2024
North America
In the second quarter of 2024, Polyester Filament Yarn (PFY) prices in North America surged significantly due to a combination of critical factors. Supply chain disruptions, soaring freight charges, and reduced production capacity during maintenance shutdowns all contributed to creating a bullish market environment. Several PFY units operated at lower capacities to optimize profitability during the off-season, compounded by maintenance activities at PTA plants, limiting supply further. Elevated spot ocean freight rates exacerbated transportation costs, thereby increasing CFR prices for PFY.
The USA witnessed the most notable price fluctuations, influenced by constrained imports from Asia and heightened manufacturing activities in May, signalling recovery from a dip in April. These price movements coincided with the Federal Reserve's decision to maintain interest rates, indirectly impacting consumer spending in the textile sector. Despite traditionally moderate demand for PFY during this period, the market faced challenges from high freight costs and a tight supply chain, which stabilized prices despite subdued downstream demand.
Compared to the same quarter last year, PFY prices in Q2 2024 increased by 7%, yet they registered a 4% decrease from the previous quarter. Within the quarter, there was a slight 1% price increase from the first to the second half. Closing the quarter, PFY 150D/48F CFR Texas in the USA ended at USD 1475 per metric ton, reflecting a stable but upward trend. Overall, the pricing landscape for PFY in Q2 2024 remained positive, buoyed by supply constraints and rising transportation costs, amidst conditions of moderate demand.
APAC
In the second quarter of 2024, Polyester Filament Yarn (PFY) prices in the APAC region experienced a significant and sustained decline, influenced by a complex interplay of factors. Chief among these was an oversupply situation aggravated by sluggish demand from downstream sectors in the textile industry. Compounding this issue were disruptions in key feedstock facilities producing PTA and MEG, which failed to stabilize prices as expected. Moreover, global port congestion and logistical bottlenecks added to the challenges by delaying the distribution of PFY, thereby exacerbating an already existing surplus of inventory and dampening procurement activities. Seasonal patterns, typical for this quarter, further intensified the market's vulnerability, as demand traditionally slows down during this period. China, being central to these market dynamics, witnessed pronounced fluctuations with a clear downward trajectory. Compared to the same quarter the previous year, PFY prices dropped by 8%, reflecting a sustained bearish trend. Quarter-on-quarter, prices decreased by 5%, indicating ongoing softness in the market. Seasonal factors played a crucial role, contributing to reduced transaction volumes and increased price pressures, with a 2% decline observed between the first and second halves of the quarter. By the end of Q2 2024, the price of Polyester Filament Yarn 150D/48F FOB-Shanghai stood at USD 1040 per metric ton. The pricing environment throughout the quarter remained predominantly negative, characterized by surplus supply amidst subdued demand and persistent disruptions in the supply chain. Industry stakeholders navigated cautiously amid constrained economic activity and uncertainties, striving to manage inventory levels amidst the continual price declines typical of this seasonal slowdown.
Europe
In the second quarter of 2024, the Europe's Polyester Filament Yarn (PFY) market witnessed a significant surge in prices driven by several critical factors. Global port congestion and heightened freight charges were pivotal in pushing PFY prices upward. Moreover, operational disruptions and maintenance shutdowns at key precursor plants exacerbated supply chain constraints, leading to higher production costs for PFY. Despite these challenges, the market showed resilience, buoyed by steady demand from downstream textile sectors, which helped mitigate more severe supply shortages. Germany, at the forefront of price adjustments, experienced a notably bullish trend. Seasonal variations in demand, coupled with restricted supplies from major exporters, propelled prices higher. Spring restocking efforts in the textile industry further intensified the imbalance between supply and demand, adding to upward price pressures. Compared to the same period last year, prices surged by a substantial 13%, indicating a robust upward trajectory. However, quarter-on-quarter changes remained steady at 0%, suggesting stabilization after the initial price surge. Across the first and second halves of the quarter, prices increased by 3%, underscoring sustained upward momentum. The quarter concluded with PFY 150D/48F CFR Hamburg priced at USD 1425 per metric ton, highlighting a positive pricing environment driven by supply constraints and consistent demand. This trend signifies a continued bullish sentiment in the PFY market in Germany, underpinned by ongoing supply challenges and robust demand dynamics.
For the Quarter Ending March 2024
North America
The first quarter of 2024 has been characterized by increasing prices for Polyester Filament Yarn (PFY) in the North America region. Several factors have contributed to this trend. Firstly, there has been a general increase in production costs in the exporting countries, mainly due to rising prices of feedstock materials such as MEG and PTA. This has led to higher prices for PFY in the market.
Additionally, the severe drought conditions in the Panama Canal have caused congestions in shipping routes, resulting in increased freight charges. This has further added to the overall cost of importing PFY into the North America region. In the United States specifically, the price changes have been the most significant. The overall trend has been one of increasing prices, with the first quarter of 2024 seeing a 7% increase compared to the previous quarter. Furthermore, there has been a 1% increase in prices compared to the same quarter last year.
Within the first quarter of 2024, there has been a slight decline in prices during the second half of the quarter, recording a 5% decrease compared to the first half. The latest quarter-ending price for PFY in the USA is USD 1470/MT of Polyester Filament Yarn 150D/48F CFR Texas. Overall, the pricing environment for PFY in the North America region has been positive, with increasing prices driven by higher production costs and increased freight charges.
Asia
The first quarter of 2024 has been challenging for Polyester Filament Yarn (PFY) in the APAC region, with market prices experiencing a significant decrease. Several factors have influenced this downward trend in PFY prices. Firstly, the global market for PFY has been bearish, with prices declining due to low demand from the downstream textile industry and seasonal changes. Additionally, the Indian PFY market has been influenced by developments in China, its major importer of PFY. In China specifically, prices of PFY have remained overall stable, but there have been fluctuations due to the depreciation of feedstock prices, such as MEG. PFY production increased, but sales did not meet expectations, leading to high stock levels. Demand from the textile industry was moderate, and the recovery rate of terminal texturing and weaving operations were low. In terms of overall trends, PFY prices in the APAC region had seen a significant decrease compared to the same quarter last year, with a decline of 13%. Compared to the previous quarter in 2024, prices were decreased by 8%. Furthermore, there was a 4% decrease in prices between the first and second half of the quarter. As of the end of the quarter, the price of PFY in China was recorded at USD 1040/MT. The pricing environment for PFY in the APAC region has been negative, with prices consistently decreasing throughout the quarter.
Europe
The first quarter of 2024 has seen a significant increase in prices for Polyester Filament Yarn (PFY) in the Europe region. Several factors have influenced this upward trend, including rising production costs in key exporting countries, limited supplies, and disruptions in trade routes. Germany has experienced the maximum price changes. Overall, the pricing environment for PFY in Q1 2024 has been positive, with prices increasing by 2% compared to the same quarter last year. The quarter-on-quarter increase is even more pronounced, at 8%. However, there has been a slight decline in prices between the first and second half of the quarter, with a decrease of 4%. Germany, being a major market for PFY, has witnessed the impact of these price changes. The country has experienced a stable market situation, with moderate supply levels and moderate to high demand from the downstream textile industry. The prices of PFY in Germany have gradually increased throughout the quarter, reaching USD 1360/MT of PFY 150D/48F CFR Hamburg by the end of the quarter. These price changes can be attributed to various factors, including rising production costs, limited supplies, disruptions in trade routes, and seasonal changes in demand. It is important to note that the pricing environment has been consistently increasing, reflecting the prevailing market conditions in the Europe region for PFY.
For the Quarter Ending December 2023
North America
Polyester Filament Yarn (PFY) prices in the North American region experienced a downturn during the fourth quarter of 2023, attributable to a convergence of factors. A significant contributor to this decline was the global economic slowdown, resulting in reduced demand from the downstream textile industry.
In the USA, the supply of PFY expanded due to fluctuations in demand, inflationary pressures, and the country's import-centric nature, creating a bearish market scenario characterized by high supply. Compounding the situation, congestion in the Panama Canal port disrupted global supply chains, leading to escalated shipping costs for goods, including PFY. This disruption is evident in the bullish trend observed in PFY prices. The international outlook for PFY indicates a sustained low, marked by heightened overcapacity and intensified market competition, contributing to the prevailing downtrend expected in the coming weeks. Furthermore, an anticipated increase in feedstock PTA prices is likely to impact production costs, exerting additional pressure on PFY prices.
Analyzing the trend and seasonality of PFY in the USA, the market exhibited a bearish stance, with a 2% decline in prices compared to the same quarter of the previous year. There was a 1% increase in price from the current quarter to the preceding one, and no notable percentage change in prices between the first and second half of the quarter. As of the quarter's conclusion, the latest price for PFY 150D/48F CFR Texas in the USA stands at USD 1387/MT.
APAC
The APAC region's Polyester Filament Yarn (PFY) market exhibited a nuanced performance during the fourth quarter of 2023, characterized by alternating bullish and bearish phases. The initial decline stemmed from diminished demand originating from the downstream textile industry in the importing European and North American markets. This resulted in a moderation of PFY prices as purchasing activities remained subdued. However, a subsequent market resurgence occurred, driven by robust demand from lining fabric manufacturers, an increased uptake in sales of downstream warp-knitted velvet fabrics, and a surge in orders for circular-knitted imitation super-soft fabric. The market's dynamics were further influenced by weak demand during the traditional shipping season, prompting major container transportation companies to announce substantial rate reductions post the conclusion of the peak festive season in the importing Southeast Asian markets, thereby contributing to a reduction in prices. The shutdown of Fujia Dahua Petrochemical's Paraxylene plant in Dalian, China, with a capacity of 1.4 million mt/year, added an additional layer of volatility to the market. Towards the conclusion of the last quarter of 2023, PFY prices were assessed at USD 1131/MT FOB Shanghai.
Europe
The European region encountered challenges in the Polyester Filament Yarn (PFY) market during the current quarter (Q4) of 2023, influenced by several noteworthy factors. Chief among these were low demand, abundant supply, and heightened production costs. The global economic slowdown, coupled with evolving consumer preferences favoring sustainable products, further contributed to the subdued demand. In Germany, the PFY market witnessed a bearish trend attributed to an influx of imports from China, a decline in raw material prices, and diminished demand from downstream textile players. The anticipated trend for the current quarter in Germany is expected to maintain a bearish trajectory, with a projected -1.4% decline in price, settling at USD 1277/MT for Polyester Filament Yarn 150D/48F CFR Hamburg. Notably, there were no plant shutdowns during this quarter, and the price percentage comparison between the first and second halves of the quarter registered at -2%. In summary, the prevailing bearish trend in PFY pricing in Germany can be attributed to a confluence of factors, including surplus supply, weak demand, and the global economic slowdown. This trend is anticipated to persist in the forthcoming weeks.
