For the Quarter Ending September 2024
North America
Throughout Q3 2024, PSF prices in the North American market experienced a notable decline. This downward trend was primarily driven by low import costs, fluctuating raw material prices, and limited offtake from downstream sectors. The interplay of these factors created a challenging pricing environment for producers.
In the USA, where the most significant price changes occurred, PSF prices fell by 4% compared to the previous quarter. The market exhibited seasonal fluctuations and a clear correlation between price movements and demand dynamics. Specifically, there was a marked decrease in prices from the first to the second half of the quarter, reflecting persistent challenges within the market. In contrast, prices were up by 2% compared to the same quarter last year, indicating some resilience in the overall pricing structure.
As the quarter concluded, the price of Polyester Staple Fiber (PSF) in the USA reached USD 1,301/MT CFR Texas. This figure underscores the prevailing negative pricing environment and highlights the ongoing pressure on market values.
APAC
The third quarter of 2024 saw a notable decline in Polyester Staple Fibre (PSF) prices throughout the APAC region, marking a significant shift in market dynamics. The -1.6% year-on-year change underscores a persistent downward trend, further compounded by a quarter-on-quarter decrease of -1.5%. Additionally, a remarkable -5% drop between the first and second halves of the quarter illustrates a consistent negative trajectory that has raised concerns among industry. Several key factors have contributed to this downturn in prices. Chief among them is the subdued demand from critical end-user industries, particularly in textiles and construction. Coupled with challenging global shipping conditions, which have restricted trade flows and escalated logistics costs, these elements have created a perfect storm for pricing pressures. In China, the market experienced the most significant price fluctuations, reflecting broader regional trends and heightened volatility. The combination of weakened consumer demand and logistical disruptions has created a challenging environment for suppliers. By the end of the quarter, the price for PSF stood at USD 1058/MT (Spot) Ex-Zhejiang, highlighting the prevailing bearish sentiment in the market.
Europe
In Q3 2024, the Polyester Staple Fibre (PSF) market in Europe faced a period of declining prices due to several significant factors. A substantial influx of lower-cost imports from Asian markets led to oversupply and intense pricing pressure across the region. Compounding this situation was weakened demand resulting from sluggish downstream industries and elevated inventory levels, which further contributed to the downward trend in PSF prices. Germany, as a major market, experienced the most pronounced price fluctuations during this time. The quarter recorded a notable 3.7% decrease in PSF prices compared to the previous quarter, highlighting the challenging market conditions. Despite this decline, prices rose by 4.8% compared to the same month last year, indicating some resilience in the market. Additionally, the 5% difference between the first and second halves of the quarter reinforced the consistent downward pricing trajectory. By the end of the quarter, PSF prices in Germany stood at USD 1,285/MT CFR Hamburg, reflecting a persistently negative pricing environment. Overall, the quarter was characterized by a substantial decrease in PSF prices, underscoring a challenging and bearish market sentiment.
For the Quarter Ending June 2024
North America
In the second quarter of 2024, the North American Polyester Staple Fiber (PSF) market demonstrated stability in pricing, driven by balanced supply and demand dynamics and consistent feedstock costs. The market remained largely stable with minimal volatility, influenced by macroeconomic factors and logistical considerations. The harmonious equilibrium between production levels and market demand, coupled with steady crude oil prices that kept raw material costs (particularly PTA and MEG) stable, contributed to this stability.
Within the USA market, PSF prices showed some fluctuations but remained relatively stable overall. Compared to the same quarter last year, there was a modest 5% increase in PSF prices, reflecting gradual demand growth and inflationary pressures. However, the quarter-on-quarter change from Q1 2024 was only 2%, indicating a steady market trajectory.
Throughout these dynamics, consistent downstream demand from textile and automotive sectors supported the stable pricing environment. The quarter concluded with PSF priced at USD 1453/MT CFR Texas in the USA, underscoring the prevailing stability observed throughout Q2 2024.
Europe
In the Q2 2024, the Polyester Staple Fiber (PSF) market in Europe demonstrated a notably stable pricing environment, supported by well-balanced supply and demand dynamics. This stability was primarily influenced by steady feedstock prices, with Purified Terephthalic Acid (PTA) prices remaining unchanged and a decline observed in Mono Ethylene Glycol (MEG) prices. Despite volatility in the international crude oil market, which typically impacts costs, PSF prices showed limited movement. High ocean freight rates also contributed to buyer caution in stockpiling, thereby maintaining a steady procurement pace.
Germany, as a focal point within Europe, witnessed the most significant price fluctuations in the PSF market. Despite these variations, overall trends remained stable due to reduced downstream demand influenced by seasonal factors and broader economic conditions such as inflation affecting consumer spending. Comparing year-on-year, prices increased by 7%, indicative of inflationary pressures, while quarter-on-quarter changes showed a modest 2% uptick, indicating a slight upward trend. Within the quarter, prices remained stable without significant variance between the first and second halves, highlighting ongoing market stability.
The Q2 2024 pricing environment for PSF in Germany was characterized as stable, maintaining equilibrium amid external pressures. Closing at USD 1423/MT CFR Hamburg, prices reflected consistent market sentiment driven by balanced supply chains, cautious purchasing behavior, and stable feedstock costs. This stability ensured the PSF market navigated the quarter steadily, unaffected by broader economic uncertainties.
APAC
In the second quarter of 2024, the APAC region experienced a significant increase in Polyester Staple Fiber (PSF) prices, driven by several key factors shaping market dynamics. Firstly, international crude oil prices rose due to geopolitical tensions and OPEC+ production cuts, impacting feedstock costs such as Mono Ethylene Glycol (MEG) and Purified Terephthalic Acid (PTA), which fluctuated accordingly. Particularly, MEG prices surged due to supply constraints, exacerbated by logistical challenges including high marine freight charges and port congestion.
Demand dynamics also played a critical role, with increased procurement from downstream industries contributing to the upward price trend. The global economic recovery post-pandemic stimulated textile demand, further boosting PSF requirements. Seasonal factors like festive periods additionally fueled consumer spending, reinforcing market sentiment.
South Korea, experiencing the most significant price fluctuations, demonstrated a strong correlation between rising feedstock prices and PSF costs. Despite seasonal and logistical challenges, prices rose consistently. Compared to the same quarter last year, PSF prices increased by 6%, with a quarter-on-quarter rise of 2.5%.
As Q2 2024 concluded, the pricing environment for PSF in South Korea was notably bullish, closing at USD 1152/MT CFR Busan. This upward trajectory reflects a market influenced by heightened cost pressures and recovering demand, marking a period of distinct price escalation.
For the Quarter Ending March 2024
North America
The first quarter of 2024 in the North America region has been marked by a notable increase in prices for Polyester Staple Fiber (PSF). Several factors have influenced market prices during this period. One significant factor is the limited availability of raw materials, notably Mono Ethylene Glycol (MEG), a crucial feedstock for PSF production. This scarcity has resulted in higher production costs, thereby exerting upward pressure on PSF prices.
Another contributing factor to the price surge is the robust demand from downstream industries, particularly the textile and clothing sectors. This heightened demand has led to a supply-demand imbalance, further propelling PSF prices upwards.
In the USA, the price trend for PSF has mirrored the overall market trend. Prices have consistently risen throughout the quarter, witnessing an 8% increase compared to the previous quarter. This upward trajectory aligns with the prevailing positive sentiment in the market. Additionally, there have been no changes in prices during the first quarter of 2024 compared to the same period in 2023.
Europe
In the first quarter of 2024, the Europe region witnessed an overall positive pricing environment for Polyester Staple Fiber (PSF), characterized by a steady increase in prices. Several factors influenced market prices during this period. Primarily, there was a notable uptick in production costs, driven by the elevated prices of key feedstock materials such as Mono Ethylene Glycol (MEG) and Purified Terephthalate Acid (PTA). Consequently, this exerted upward pressure on PSF prices. Additionally, a rise in freight charges impacted logistics, thereby increasing the overall cost of importing PSF. In Germany, the price fluctuations for PSF were particularly significant. The market experienced a substantial 7% increase in prices during the first quarter of 2024 compared to the previous quarter. This can be attributed to the tight supply of PSF due to limited inventory and disruptions in the shipping industry. The concurrent increase in production costs and higher freight charges further contributed to the price surge in Germany. However, on a year-on-year basis, the price of PSF in Q1 2024 exhibited a 2% increase, reflecting the overall upward trend in prices over the past year.
APAC
The first quarter of 2024 witnessed a notable increase in prices for Polyester Staple Fiber (PSF) in the APAC region. Several factors have contributed to shaping market prices during this period. Overall, a positive trend in prices was observed, primarily driven by high feedstock prices resulting from the tight supply of feedstock amidst fluctuating crude oil prices. Additionally, the rise in freight charges, spurred by the disruption in the Red Sea, exerted further upward pressure on product prices. From the downstream perspective, while there wasn't significant pressure from new orders, regular contract orders remained steady. Within the Asian Pacific region, the South Korean market experienced the most significant price changes. Various factors, including seasonality and correlation in price changes, contributed to this fluctuation. It's noteworthy that in the first quarter of 2024, PSF prices in the South Korean market increased by around 3% compared to the previous quarter. However, there was a slight reduction of approximately 1% in PSF prices compared to the same quarter of the previous year.
For the Quarter Ending December 2023
North America
Polyester Staple Fiber (PSF) witnessed price fluctuations in the fourth quarter of 2023, driven by adverse feedback from downstream textile markets and a decline in production costs. The North American market, particularly the USA, experienced notable price changes influenced by various factors.
Initially, December 2023 saw a bullish market due to shipment delays caused by Panama Canal port congestion, leading to a sudden price rebound. However, the market sentiment turned bearish in November 2023 due to an influx of imported goods from China and an oversupply of raw materials.
Furthermore, the economic downturn in the USA, combined with inflationary pressures, contributed to a shift in market dynamics from excess demand to oversupply and insufficient demand. This transformation is reflected in the polyester staple fiber sector, where the oversupply of raw materials such as Polyethylene Terephthalate (PET) and Mono-Ethylene Glycol (MEG) exacerbate the challenge as demand struggles to keep up. Consequently, Polyester Staple Fiber prices settled at USD 1314/MT CFR Texas during December 2023.
APAC
The Chinese Polyester Staple Fiber (PSF) market faced a notable downturn in the first half of the fourth quarter of 2023, marked by a substantial decrease in prices. This decline can be attributed to a combination of factors, including heightened production capacity, reduced demand from downstream textile industries, and intensified competition from imports. The oversupply of PSF, stemming from increased production, has driven prices down. Further, Global shipping disruptions, particularly at the Panama and Suez Canals, have disrupted the export chain, delaying orders to key markets like the USA and Europe. This delay, coupled with uncertainties in outgoing shipments, has made overseas buyers reluctant to place new orders, exacerbating the domestic oversupply. Despite these challenges, there's a positive aspect with a slight uptick in the China General Manufacturing Purchasing Managers' Index (PMI) observed in December 2023. The PMI is an indicator of the manufacturing sector's overall performance. This marginal improvement suggests a potential positive shift in the manufacturing industry, signaling a more optimistic outlook. This positive development contrasts with the recent decline in the PSF market, indicating that the broader manufacturing sector in China may be showing signs of recovery and resilience. Consequently, Polyester Staple Fiber prices settled at USD 1076/MT FOB Shanghai during December 2023.
Europe
The European polyester staple fiber (PSF) market witnessed a continuous decline in the fourth quarter of 2023. Germany, closely linked with China as a key trading partner for PSF, faced disruptive effects from dumped Chinese products saturating the market, reshaping dynamics beyond demand capacity. The surplus of raw materials, particularly PET and MEG, intensified the issue, creating an excess amid insufficient demand. Further, High inflation rates added pressure, constraining consumer purchasing power and hindering overall sector growth. External trade dynamics, oversupply, and economic constraints presented a complex challenge to Germany's PSF market, leading to a noticeable price decrease. Additionally, weak demand from the downstream textile industry resulted in consistently low PSF demand, impacting profits for downstream companies and fostering a bearish market sentiment. The cumulative impact poses challenges for PSF producers, importers, and downstream textile companies in Germany. Additionally, the market is grappling with high stock inventory levels, which add to the challenges as excess supply puts downward pressure on PSF prices. Consequently, Polyester Staple Fiber prices settled at USD 1295/MT CFR Hamburg during December 2023.
For the Quarter Ending September 2023
North America
During the third quarter, the Polyester Staple Fibre (PSF) market values remained at the lower end compared to the second one, as a continuous downward trend has been observed during this period amid excess surplus available in the local downstream textile industries. Consequently, several producers decreased their manufacturing activity for PSF due to low purchasing activity in the region during July, which has further contributed to the downtrend. This reduction was evident from the decline observed in the Purchasing Managers' Index in July 2023, indicating a contraction in the manufacturing sector, which continued in August, as inventory levels of PSF within the region remained elevated amid a decline in new orders during this timeframe. As per the data, exports of textile and clothing goods equaled 27.115 billion US dollars, a year-on-year decrease of 18.38% along with a decline of 3.57% compared to August. The continuous decrease in PSF exports from China to the US supported the downtrend in the prices during September.
Asia
During the third quarter, the Polyester Staple Fibre (PSF) market in Asia saw significant price fluctuations, with prices marginally falling in the first half of the quarter and rallying in the second half amid the supply curtailment in the domestic market of China. During July, the marginal decline was attributed to the drop in demand from downstream home textile industries as consumers were becoming more conscious about sustainability. However, the price of PSF had a positive start in August amid robust demand from industries that use PSF for wadding and filtration has increased. In the upstream market, crude oil prices increased after Saudi Arabia and Russia continued to cut their production, which further supported the uptrend. Along with this, a few feedstock MEG units were put in maintenance turnaround from early September, including BASF-YPC and Sinopec Shanghai Petrochemical INEOS Aromatics in China, which further participated in the lesser availability to produce PSF. Moreover, restocking activities have resumed in some manufacturers in the downstream yarn industry due to healthy demand in the seasonal month of September.
Europe
The prices of German Polyester Staple Fibre (PSF) in the third quarter of 2023 were much lower than in the second half of the year. A continuous downtrend has been observed throughout the quarter amid sufficient inventories catering to the subdued demand from the downstream textile industry during July. Additionally, under the weight of inflation, the consumer's spending declined, which further forced manufacturers in the region to lower the margins, which supported the bearish trend. Following that, the demand for PSF was generally low as the performance of the downstream textile industry was disappointing during August. Purchasing activities amongst consumers remained grim as recessionary conditions prevailed across Europe. Alongside, the existence of ample inventories was confirmed in the face of largely underutilizing demand because trades were left with no room for price increments during this period. These interconnected factors create a complex and challenging landscape for the German PSF market, where demand, economic conditions, and inventory levels are all contributing to the bearish trend during September.
For the Quarter Ending June 2023
North America
During the second quarter of 2023, the Polyester Staple Fiber (PSF) prices in the US market experienced a continuous decline. The upstream industry faced volatility in feedstock and crude oil prices due to the announcement of production cuts by OPEC+ members. However, low demand for yarns and spun yarns, specifically in the apparel sector, weakened the PSF market in the region. The prices of key raw materials like Mono-Ethylene Glycol (MEG) also faced downward pressure. In the meantime, rising inflation and high-interest rates in the region weakened consumer spending, further dampening demand. The filtration industries also experienced unsatisfactory demand. Though the inflation rate was decreasing, it remained at a level that constrained consumer spending, especially in the home-textile sector. As a result, consumers were cautious with their spending, leading to low demand in the market. Furthermore, producers decreased their manufacturing activity due to high inventory and low purchasing activity in the region. The FRED data also showed that the production price index of the US market decreased in June. Ultimately, the PSF price trended downwards throughout the second quarter, reaching USD 1378/MT CFR Texas during June 2023.
APAC
In the APAC market, the Polyester Staple Fiber (PSF) industry declined continuously throughout the second quarter of 2023, primarily due to a rise in stocks caused by reduced demand for polyester materials. The textile sectors, including the home textile and clothing industry in South Korea, experienced difficulties with decreasing orders and production cuts. Although there were positive signs of improvement in supply chains from manufacturers, leading to an accumulation of excess inventories in the region and resulted in a decline in PSF prices. The PSF industry's operating load also continued to rise, along with an improved operating rate of PSF industries. Healthy imports from China were observed as the operating rate of PSF industries in the Zhejiang and Jiangsu regions of China remained optimal. According to Statistics Korea data, the consumer price index remained unchanged in June 2023, with the figure hovering at 111.12, as weak global demand impacted the market. Consequently, consumers reduced their spending, and firms either reduced their selling pressure or maintained stable prices to stimulate sales in the region. As a result, the June price for PSF declined and settled at approximately USD 1081/MT CFR Busan.
Europe
The demand for Polyester Staple Fiber (PSF) in the European market has deteriorated throughout the second quarter of 2023. Industry experts and analysts attribute this sluggishness to an oversaturated demand, resulting in an abundance of yarn inventories in mills across the region. The Eurozone Manufacturing PMI also declined to 43.6 in June 2023 due to low production costs amid a slowdown in new orders. Rising inflationary in the Euro Area had directly impacted consumer confidence and spending patterns, particularly in sectors that heavily rely on discretionary purchases like textiles and apparel. However, despite the challenging market conditions, the European market has managed to maintain a smooth supply and optimal inventory levels for PSF. This effective management of supply and inventory contributes to an overall sense of stability in the region, despite the PSF industry experiencing a downward trajectory. Conclusively, the Polyester Staple Fiber (PSF) price declined throughout the second quarter and settled at around USD 1327/MT CFR Hamburg during June 2023.
For the Quarter Ending March 2023
North America
The cost of Polyester Staple Fibre (PSF) increased during the first quarter of 2023. The rising cost of upstream purified terephthalic acid (PTA) and Ethylene Glycol gave polyester staple fibre a boost. Because of the sharp increase in crude oil prices around the world, both feedstocks had stabilized. Additionally, a slowdown in production rates resulted from the disruption after months of contentious labor discussions between the union dock workers and their employers, as industries experienced a labor shortage in the second half of the quarter. While few PSF enterprises allegedly suffered selling pressure as a result of reduced inventories, the operating rate of the textile industries remained mild. As a result, throughout the first quarter of 2023, the PSF market maintained its bullishness.
APAC
The processing margin for Polyester Staple Fibre (PSF) fluctuated over the first quarter as prices went up and down. The increasing demand from the spinning and weaving industries led to the increment in Polyester Staple Fibre prices in the first half of the quarter. However, several other factors influenced the pricing in the second half of Q1, including increasing stocks, shifting supply and demand dynamics, and unfavorable market sentiment, which were to be blamed for the price decrease. Overall, it appeared that a mix of supply and demand variables, as well as shifting feedstock prices, had an impact on the PSF market in Q1.
Europe
In the first part of the quarter, prices for Polyester Staple Fibre (PSF) increased as demand in the end-use industry increased. The region's overall stocks were reducing since demand from the textile and home furnishings sectors was finally building up. The upward trend in its price was also influenced by slow production rates and a supply disruption at the conclusion of the quarter brought on by worker demonstrations in Europe over low wages and unfavorable working conditions. However, the price for PSF fell for the major part as the region's supplies began to rise. Also, due to the few inquiries from the consumer's end, mounting inventories, and unfavorable consumer attitudes, the market mood in the European PSF remained subdued for a major part of Q1.
For the Quarter Ending December 2022
North America
The price trend for Polyester Staple Fiber in the quarter fourth of 2022 has been declining throughout the quarter. The reason behind the price decrement is changing market situation and reducing demand outlook from downstream industries. The slower trading activity came as market participants monitored Hurricane Ian's impact on Florida, far removed from the Texas-Louisiana Gulf Coast's refining, disrupting the production of PSF. High inflation and ongoing retail supply chain issues in the United States were casting dark clouds over important holiday shopping. Meanwhile, during the first half of the quarter, Hurricane Ian dampened production across the rest of the US. Conclusively, the price for PSF declined and settled at USD 1440/MT CFR Texas.
APAC
Throughout the APAC region, the price trend for Polyester Staple Fiber followed the same trend, with prices mainly declining in the region. Since South Korean shipbuilding industry experienced its worst labor shortage, and they were finding it difficult to produce the number of hull blocks necessary to meet their delivery schedules. Also, demand from the commercial market for its utilization of fiber fillings in cushions and sofas was not sufficient enough in the Q4 of 2022. Meanwhile, in China, small firms have struggled to reach production targets to ensure supplies during the winter season because of the strict Zero-Covid Policy. So, the reported demand ranged from modest to low during the quarter.
Europe
The price of Polyester Staple Fiber increased in the early half of Q4, which forced a reduction in price as Q4 progressed. A few of the reasons influencing the price shift throughout the course of the quarter were rising energy prices, surging inflation, and low inventories. Furthermore, PSF prices in European nations climbed in the early stages of Q4 as a result of escalating geopolitical unpredictability and rising energy prices. High gas costs and sensitivity to gas and power prices also had a negative impact on PSF prices. Later, prices for polyester staple fiber in Germany decreased as consumer confidence remained muted and polyester chip prices declined. A false sense of security was also caused by the decline in European natural gas prices for December, and the price of the commodity was also easing.
For the Quarter Ending September 2022
North America
Prices for Polyester Staple Fiber decreased due to a deteriorating outlook for domestic demand. Most downstream weaving firms were cautious about raw materials purchase, as the market's overall trading environment was light, and demand was not healthy. At the same time, producers were primarily concerned with operational cuts as weaker demand led to material accumulation on the domestic market. Feedstock prices for Purified Terephthalic Acid (PTA) and Mono-Ethylene Glycol (MEG) decreased with falling crude oil prices during the first half. While in the later period, production was severely disrupted due to Hurricane Ian's effects in the country's southern region, which reduced inventories, causing a marginal hike in price during September.
APAC
The price of Polyester Staple Fiber eventually dropped dramatically as the market for the feedstock PTA (Purified Terephthalic Acid), and MEG (Mono-Ethylene Glycol) shrank, which coincided with a reduction in the production cost of PSF. The inventories were also overstocked owing to a lack of consumer demand and a surplus of supply. Meanwhile, the price of PSF in the domestic market also decreased due to a decline in downstream demand for Fibre fillings in cushions and sofas. At the same time, the operating rate decreased, and the overall downstream orders were sluggish. Later as South Korea's central bank increased interest rates and warned that there would be more to come, demand for the product was severely affected.
Europe
In Germany, Polyester Staple Fiber prices dropped in the first half of Q3 since the demand outlook weakened in the domestic market. Orders in the domestic market continued to decline, new orders for foreign trade were not issued smoothly, and shipments slowed down during the third quarter. Thus, the wait-and-see sentiment stood firm, with manufacturers mainly focused on operation cuts, as sporadic demand caused stockpiling material in the domestic market. Later, the supply chain was disrupted owing to low water levels in the Rhine River and congested ports, delaying more than 2% of the world's shipping capacity, which was halted outside Germany's North Sea ports.
For the Quarter Ending June 2022
North America
In North America, Polyester Staple Fiber price increased by 5 % in the first half of Q2, which dipped later. The increasing demand for polyester staple fiber in sportswear, and activewear from the garment industry, are propelling the market forward. Furthermore, orders from the home furnishing segment for making pillows, sofas, bed sheets, carpets, and rugs had increased the market value for polyester staple fiber in the region. Meanwhile, feedstock Purified Terephthalic Acid (PTA) and Mono-Ethylene Glycol (MEG) remained volatile throughout the quarter. During the second half, the price for PSF dipped, backed by sufficient availability and low offtakes from the downstream sector. The operating rate of downstream industries also declined, foreseeing the dull market sentiments. Therefore, the PSF price fluctuated and settled around USD 1583/MT CFR Texas in May 2022.
APAC
The Polyester Staple Fibre market has been firm throughout the first half of Q2, but it dipped in the second half. The price change has been due to intense cost pressure from upstream Purified Terephthalic Acid (PTA) and constrained supply fundamentals. The global Crude oil supply speculations are unable to ease, and crude oil prices have been trending upwards since the beginning of the Ukraine-Russia conflict. This has increased overall cost pressure on key-value chains, including Polyester Staple fiber. Therefore, the price for PSF rose and settled at USD 1237/MT FOB Shanghai in June 2022. In contrast, the Indian market saw an increment in its rate as the downstream demand improved. Reliance Industries Limited has also increased the price of feedstock in the domestic market. Rigid order recovered in some companies since May stimulated by higher cost pressure. Conclusively, the price for PSF 1.2D rose and settled at USD 1664/MT Ex-Silvassa in June 2022.
Europe
In Europe, Polyester Staple Fiber rose throughout the quarter as demand for the product remained consistent throughout the months. Feedstock Purified Terephthalic Acid and Mono-Ethylene Glycol have been volatile since the war between Russia-Ukraine. Since then, the market for Crude Oil has been firm, affecting the pricing of petrochemical derivative products. Further, Turkey’s dependency on China, India, and Indonesia for importing the product has led to the soaring market trend because of supply tightness and port congestion. In addition, due to the impact of the epidemic in China, transportation of goods was limited, which kept booming the warning of unavailability of material with manufacturers in Europe. Thus, under the influence of cost and supply, the price of polyester staple fiber showed strong performance in the domestic market, and the price for PSF 1.2D settled at USD 1837/MT CFR Haydarpasa in June 2022.
For the Quarter Ending March 2022
North America
In North America, Polyester Staple Fibre (PSF) witnessed decline in its trend in the first half of Q1, followed by a sudden increment in its price by 9%, owing to high feedstock prices. Upstream PTA (Purified Terephthalic Acid) and MEG (Mono-Ethylene Glycol) also fluctuated in the domestic market amidst high crude oil prices due to the Russia -Ukraine conflict. Purified Terephthalic Acid imports from Asian countries were hampered which also caused the domestic market prices to hike. In addition, port congestions and rising shipping costs further increased the prices of PSF. Therefore, the PSF market grew and settled at USD 725 FOB US Gulf by March.
Asia Pacific
Demand from the downstream textile industry boosted the price of Poly Staple fibre (PSF) in the Indian market. Purified Terephthalic Acid (PTA) and Mono-Ethylene Glycol (MEG) prices have gained since the beginning of the year due to high energy values which increased overall cost of production for PSF. In China, the PSF market rose in the first half of the quarter, later sustained in the second half of Q1 owing to the volatile feedstock prices. As a result, the price increased and reaching USD 1230/MT in March. Further, several curbs in the Chinese market made PSF weaker, causing a decline in its trend.
Europe
In Europe, the Polyester Stable Fibre (PSF) market observed a hike in the first half of the quarter, followed by a decline in its trend, which later rebounded by 6% in the second half of Q1. This variation in price trend was attributed to the war between Russia-Ukraine which disrupted the demand-supply dynamics. Even though the downstream demand was deemed stable, disrupted supply owing to operational cuts fluctuated the price value of PSF. Feedstock import from Asian countries was reduced due to the limited port activity, which caused enhanced upstream cost. Therefore, the price for Polyester Staple Fibre settled at USD 1493 CFR Hamburg (Germany) in March.
For the Quarter Ending December 2021
North America
Limited availability of feedstock PTA hampered production rates of downstream PSF. For PTA, USA heavily relies on exports from Mexico, however production disruption in Mexico exacerbated PTA supply dynamics in USA as well. Increased cost of raw materials and increasing cost of production culminated into consistent price spikes of PSF throughout the quarter. Feedstock MEG availability was robust throughout the quarter as upstream ethylene stabilized in Q4. Prices of PSF were assessed at USD 1273 per MT in December. Imports of PTA from Asia were unsustainable on the back of incessant rise in freight charges and shipping costs.
APAC
Polyester Staple Fibre (PSF) market started the last quarter on a strong note where healthy demand from downstream industries and rising feedstock prices contributed towards bullish market sentiment in China. However, PSF market lost steam towards the second half of Q4 as demand stabilized meanwhile cost pressure from feedstocks eased in November and December. PSF prices increased in October 1220 to USD per MT while prices declined in H2 of Q4 to USD 1104 per MT on FOB basis. Price pressure of soaring raw materials has pushed up the price of Polyester Staple Fibre in Indian market throughout Q4 meanwhile there was increased pressure from high demand from domestic textile sector. Festive season brought optimism across Indian textile industry coupled with recently introduced PLI scheme for textile manufacturers by Indian government. PSF 1.2 D grade prices consistently increased from October to December and were at INR 102400 per MT after conclusion of the last quarter.
Europe
PSF market in Europe was termed as lopsided throughout the last quarter as demand fundamentals remained strong while supply dynamics struggled due to curtailed production of PSF across the continent. Limited availability of feedstock PTA in Q4 culminated in declined production rate as PSF market witnessed strong competition from PET market in terms of PTA consumption. Feedstock MEG prices also remained strong due to inflationary pressure which further contributed towards increased prices of Polyester Staple Fibre. Imports of MEG and PTA were limited from Asia as resolutely high freight charges made imports uncompetitive and unsustainable. In December, PSF prices were assessed at USD 1340 per MT.
For the Quarter Ending September 2021
North America
The price trend of Polyester Staple Fiber (PSF) witnessed an upward trajectory during 2021 led by strong raw material rates. In the US market, the demand for PSF remained bullish from downstream sectors including apparel, home furnishing, construction, and automotive as operating rates ramped up after the Q2 hiccups. The supply of Polyester Staple Fiber (PSF) was low as the availability of raw material PTA and MEG was limited which led to an increment in prices of PSF. Dented shipments out of the US due to Hurricane Ida paved the way for several Asian buyers in the trading sphere.
Asia Pacific
During Q3 of 2021, the prices of Polyester Staple Fiber rose significantly in the Asia Pacific region. In India, despite regular intervention by the government in stabilizing staple fibers prices, PSF kept its upward trajectory in August. Increasing raw material PTA and MEG prices were the major reason behind this consistent rise during the quarter. In the meantime, the Indian demand remained stable under optimism of the coming festive season in the country. Thus, PSF prices rose effectively from USD 1085/MT to USD 1324/MT from July to September. In China, polyester industries entered the maintenance season in August and Several producers declared force majeure or curtailed the production volumes at their facilities. However, sharp surge in international crude offered strong cost support for the Chinese PTA.
Europe
In the European region, various downstream Polyester producers curtailed operations to cope with slowing textile demand, and the market sentiments were compounded by the announcement of new supplies in the Asian markets. Uncertainty over upstream MEG is likely to create further volatility in PSF prices in Q4. The market suffered from supply disruptions on the raw material MEG front, leading to increased Polyester Staple Fiber (PSF) prices in Q3 2021.
For the Quarter Ending June 2021
North America
In Q2 2021, supplies of Polyester Filament Yarn (PFY) were restrained, despite improved plant operating rates in key feedstock PTA and Mono-Ethylene Glycol plant. As early quarter deliveries were still pending, most of the cargoes were diverted to close backlog orders. Supply crises was further exacerbated amidst the diversion of upstream to PU manufacturing facilities. Although the demand remained consistent from the downstream industries, as the mass vaccination programmes amplified the public and market movement in North American region. Thus, prices of PSF witnessed firmness in the quarter ending June 2021.
Asia Pacific
In the Asia Pacific region, supplies remained constrained owing to the reduced production margins of upstream PTA and MEG which impacted the availability of Polyester. Situation was further exacerbated as the second COVID wave curtailed the industrial and market outlook and depressed the market sentiments of upstream PTA and MEG in the South Asian market. Whereas China exported vast volumes of cargoes to the US, throughout the second quarter. Overall demand remained balanced in Q2 2021, as the demand was majorly driven by the export market, where the offtakes from the textile industries were consistent. Due to the low market activities, inventories levels surged in India thus producers were compelled to reduce offers to initiate offtakes. As a repercussion, prices OF PSF at Ex-Work Silvassa settled at USD 870 per tonne in June.
Europe
The European Polyester Staple Fiber (PSF) market outlook remained uncertain amidst short supply conditions. Imports from the US gradually improved but the availability remained low to meet the end use demand. Further the imported volumes of upstream was diverted towards the PU manufacturing industries which further hindered the manufacturing of PFY. Demand was healthy from the downstream textile industries, as a repercussion the Polynt Composites surged the prices of Polyester Fibers by USD 352 per tonne in April.
For the Quarter Ending March 2021
North America
Supplies of PSF in the North American region were tight, owing to the shortage of key feedstocks due to the high shipping freight cost amid the severe freezing weather hits the USA Gulf region. The climate crises in February caused multiple power outages which forced the regional plants to shut down during that time frame. Demand improved with gradual improvement from the downstream textile industry. A leading manufacturer surged the prices of PSF exported to the European and Middle East region by +USD 362/MT, due to high delivery and packaging cost.
Asia-Pacific (APAC)
Asian PSF market remained balanced to tight during the first quarter of 2021, as the addition of new feedstock plants in China kept the upstream availability supple towards the production of PSF, however some constraints were witnessed due to the reduced import from the western regions. IGPL announced plans to setup PA plant in Gujrat, the facility will be merged with production UPR to boost the domestic textile sector. PSF prices in India were stable throughout the quarter with USD 931 per MT for February deliveries. However, prices took a downtrend in quarter end due to the resurgence of COVID in several parts of the region.
Europe
PSF market in the European region remained tight during the first quarter of 2021, owning to the reduced imports from the Asian region, due to Suez Canal blockage and high shipping freight cost. Extreme cold weather in the northwest Europe further created the transportation hinderance and delays in supplies of key feedstock. Demand was strong throughout the quarter due to better offtakes from the downstream automotive and construction sector.
For the Quarter Ending September 2020
North America
The North American PSF market struggled to recover the lost uptrend during the third quarter due to disrupted trade dynamics and macroeconomic fragility on account of rising COVID-19 cases in the several economies. As per the market updates, Hurricane Laura forced several US polyester fiber plants to remain shut in Bay Saint Louis and Mississippi, causing them to stay non-operational for over a month. Major producers in the region reported subdued sales and pressured rates despite reportedly slight gains observed in the feedstock Monoethylene Glycol (MEG) due to regional material shortage.
Asia
The Asian PSF market took longer-than expected to level up since July as sluggish sales continued to hamper the already oversupplied market. However, the overall demand showed signs of recovery entering September amid the peak season as some countries observed activity ahead of the festive season and boosted year-end sales. Some Indian traders were heard sighing that the outbreak of coronavirus has dragged the global economy into recession, which has eventually affected the consumption of polyester-made textile products such as garments during the quarter. China which is the world's largest polyester producing country reported improved operating rates on the back of rising export orders. PSF 1.4 Denier FOB NE Asia were assessed around USD 700 per tonne during the quarter, despite firming feedstock Monoethylene Glycol (MEG).
Europe
European textile imports stayed muted-to-low during the quarter as major players were heard grappling with ample polyester inventories. The market players seemed apprehensive as dampened production rates in the textile sector which may remain pressured against the backdrop that some European countries declared lockdowns to combat second wave of coronavirus infections may continue to affect the offtakes. European apparel imports have declined at a much slower pace in August and Chinese PSF export volumes to EU were assessed to decline by about 20% in volume terms, from the previous year. As PSF strongly traces feedstock MEG, prices remained additionally impacted with the firming feedstock.
