For the Quarter Ending September 2024
North America
In Q3 2024, the North American Polypropylene Filament Yarn (PPFY) market experienced a notable decline in prices, primarily driven by limited offtake from downstream sectors. The sluggish demand was evident across various industries, impacting overall market performance. This lack of consumption placed significant downward pressure on PPFY prices.
A crucial factor contributing to this decline was the substantial decrease in the feedstock prices of Polypropylene (PP). This quarter saw PP prices fall sharply due to oversupply and insufficient cost support from upstream feedstock. The combination of these elements created a challenging pricing environment for PPFY manufacturers.
Moreover, in anticipation of the hurricane season, regional traders had stocked up on ample inventory. However, this stockpiling led to an unexpected oversupply in the market, exacerbating the decline in prices. As a result, the overall market dynamics reflected a persistent downward trend in PPFY pricing throughout the quarter, as the effects of limited demand and excess inventory continued to shape the landscape in North America.
APAC
In Q3 2024, the pricing landscape for Polypropylene Filament Yarn (PPFY) in the APAC region exhibited a mixed trend influenced by several key factors. In the initial two months of the quarter, PPFY prices increased steadily, primarily due to supply disruptions caused by plant shutdowns and elevated freight charges. However, in the final month of the quarter, a noticeable decline in prices emerged, driven by lower feedstock costs and an oversupply resulting from high operational rates in anticipation of increased consumption levels. Throughout the quarter, demand for PPFY in the APAC region remained consistent, but fluctuations in feedstock prices and supply dynamics significantly impacted the overall pricing trend. India experienced the most pronounced price changes, recording a slight increase of 1% compared to the previous quarter. Seasonal trends, coupled with the correlation to global market conditions, further influenced price fluctuations. Nevertheless, PPFY prices fell by 10% relative to the same quarter last year. By the end of the quarter, the price for PPFY in India was noted at USD 1539/MT, reflecting the complex interplay of market factors during this period.
Europe
In Q3 2024, the European Polypropylene Filament Yarn (PPFY) market exhibited an upward pricing trend, driven primarily by limited inventory levels and tight supply conditions. Early in the quarter, several manufacturing units across Europe underwent maintenance shutdowns, which constrained production capacity. Despite this, demand from the downstream market remained moderate, preventing a sharper decline in prices. A significant factor influencing the PPFY market was the behavior of feedstock Polypropylene (PP) prices. Throughout the quarter, the inventory of feedstock PP was notably low in the region, exacerbated by reduced import levels from the Middle East. This scarcity of feedstock contributed to the upward pressure on PPFY prices as manufacturers struggled to maintain supply amid consistent demand. The combination of restricted inventory and tight supply dynamics established a favorable environment for price increases, with PPFY prices reflecting this trend throughout the quarter. As manufacturers navigated these challenges, the overall market conditions pointed towards a resilient response in the face of production constraints and fluctuating demand levels.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Polypropylene Filament Yarn (PPFY) market experienced a bullish trend in prices. This increase was primarily driven by higher feedstock polypropylene prices, which raised production costs. Additionally, the cost of importing PPFY from the Asian market surged due to elevated freight charges. These increased shipping costs were largely attributed to the Red Sea crisis, which disrupted major shipping routes and exacerbated logistical challenges.
On the demand side, the North American market saw moderate demand for PPFY. Although not experiencing a surge, the consistent demand was sufficient to maintain upward pressure on prices, particularly in the face of rising input costs and supply chain disruptions. The combination of higher production costs and increased import expenses created a constrained supply environment, contributing to the bullish price trend.
Conclusively, Q2 2024 saw a positive pricing trend for PPFY in North America, driven by a mix of higher raw material costs and increased logistical expenses. The stable demand, despite the challenges, helped sustain the market's momentum, reflecting a strong market resilience amidst global supply chain issues.
APAC
In Q2 2024, the Polypropylene Filament Yarn (PPFY) market in the Asia-Pacific (APAC) region experienced a noticeable downward trend in prices. This quarter was characterized by a combination of factors exerting bearish pressures on the market. Key influences included a persistent oversupply driven by heightened production capabilities amidst weakened demand from downstream textile sectors. Disruptions in global logistics, exacerbated by congestion at major ports, further complicated supply chain dynamics, affecting distribution efficiency. Additionally, geopolitical tensions and economic uncertainties curtailed international demand, leading to a notable decline in export volumes. Plant shutdowns and maintenance activities within the region also contributed to the market's instability, impacting production continuity and market sentiment.
Focusing on India, the market witnessed the most significant price fluctuations. The overall trend remained bearish, influenced by seasonal factors and reduced consumer spending power, further strained by inflated costs of living. The Indian market recorded a -4% price change compared to the previous quarter in 2024 and a -1% price comparison between the first and second halves of Q2 2024. This trend underscores the pervasive market challenges and declining consumer confidence. The diminishing demand was not offset by any substantial domestic festival-driven consumption, unlike previous periods. As a result, the quarter concluded with a PPFY price of USD 1535/MT Ex-Mumbai, reflecting a predominantly negative pricing environment.
Europe
In Q2 2024, the European Polypropylene Filament Yarn (PPFY) market experienced a bearish trend in prices. This decrease was primarily driven by lower feedstock polypropylene prices, which reduced production costs and exerted downward pressure on PPFY prices. The drop in feedstock costs was a significant factor in the overall reduction of PPFY prices during the quarter.
On the demand side, the market saw only moderate demand for PPFY. While not experiencing a significant downturn, the steady but unspectacular demand did little to counterbalance the effects of falling input costs. The combination of reduced feedstock prices and moderate demand contributed to the negative pricing trend.
Conclusively, Q2 2024 reflected a negative trend for PPFY prices in the European market. The primary driver of this trend was the decline in feedstock polypropylene costs, which led to lower production expenses and subsequently, reduced PPFY prices. The moderate demand did not significantly impact the bearish trend, highlighting the market's sensitivity to feedstock price fluctuations. The quarter ended with a predominantly negative outlook for PPFY prices in Europe, underscoring the impact of raw material costs and demand dynamics on market conditions.
For the Quarter Ending March 2024
North America
In the first quarter of 2024, the Polypropylene Filament Yarn (PPFY) market in North America demonstrated a varied pricing pattern, characterized by fluctuations where certain months observed increases while others experienced declines. Several factors contributed to these shifts in prices.
A significant factor impacting PPFY prices was the surge in import costs, driven by the Red Sea crisis, leading to a bullish trend in prices. Additionally, the rise in interest rates and labor wages affected PPFY production costs, further raising expectations of price hikes. Despite moderate demand from downstream industries, high freight charges added to the upward pressure on prices. Furthermore, reduced demand from downstream industries in Europe resulted in a decrease in PPFY off-take from the textile sectors. However, supply remained steady throughout the period, allowing manufacturers to maintain full operations.
Overall, the pricing environment for PPFY in the North American region during Q1 2024 exhibited volatility. Price fluctuations were influenced by factors such as import costs, supply-demand dynamics, and downstream industry demand. In summary, prices experienced fluctuations compared to the previous quarter.
APAC
The first quarter of 2024 has presented a mixed picture for Polypropylene Filament Yarn (PPFY) pricing in the APAC region. Generally, there has been a slight uptick in prices compared to the same quarter last year, propelled by factors such as improved feedstock prices and seasonal stocking activities. However, the overall pricing trend has been volatile, with fluctuations observed in different regions. In India, the largest market for PPFY in the region, prices have undergone significant changes. During the initial two months of the quarter, prices in the Indian market continued to rise primarily due to increased feedstock prices and heightened demand during the winter season. However, prices declined in the latter part of the quarter due to lackluster demand from downstream sectors amid improving weather conditions. Overall, the pricing environment for PPFY in India has been characterized by both increases and decreases, influenced by factors such as improved feedstock prices and moderate to low supply. Nevertheless, challenges such as logistical hurdles and sluggish demand from the domestic market have been present. In conclusion, the latest quarter-ending price for PPFY in India increased in the first quarter of 2024 compared to the previous quarter, while prices declined by approximately 3% compared to the same quarter of the previous year.
Europe
Throughout the first quarter of 2024, the European Polypropylene Filament Yarn (PPFY) market observed a combination of pricing trends, initially encountering a decrease followed by stabilization, and a slight upward movement towards the end of the period. Several factors influenced the pricing dynamics of PPFY in Europe. Despite moderate to low availability, manufacturers successfully maintained uninterrupted operations. However, the market faced challenges stemming from high chemical prices and heightened marine freight costs, affecting the supply-demand equilibrium. On the demand side, there existed a moderate to high demand for PPFY. In Belgium, a notable market within Europe, PPFY prices stabilized in the middle of the quarter following a significant decline at the outset. This stabilization was primarily credited to favorable production costs driven by a reduction in raw material prices. Nonetheless, there were indications of a potential rebound in the subsequent months. Overall, the pricing landscape for PPFY in Europe remained dynamic, with supply and demand dynamics exerting significant influence on prices. In summary, PPFY prices in the Belgian market witnessed an increase in the first quarter of 2024 compared to the previous quarter.
For the Quarter Ending December 2023
North America
The polypropylene filament yarn (PPFY) market in North America witnessed price fluctuations in the fourth quarter of 2023, influenced by various factors.
Initially, the market was on an upward trajectory, driven by a consistent expansion fueled by the growing downstream textile industry. This sector increasingly adopted polypropylene filament yarn due to its favorable properties and cost-effectiveness. The key player in this narrative was the raw material itself, polypropylene, whose prices showed a steady upward trend due to robust demand conditions.
Industries sought a stable supply of polypropylene to maintain their manufacturing schedules, creating a demand-supply dynamic that further drove up the prices of polypropylene filament yarn. However, later in the quarter, the market for PPFY experienced a drop in prices. This decrease was influenced by the availability of cheaper raw materials, specifically polypropylene, and weakened demand from the weaving industry. As the new year approached, domestic players in the industry adopted a cautious approach in response to a decline in demand, leading them to reduce inventory levels. The combination of these factors contributed to the fluctuation in the prices of polypropylene filament yarn in North America during the fourth quarter of 2023.
APAC
In the fourth quarter of 2023, the Polypropylene Filament Yarn (PPFY) market in the APAC region faced several challenges that significantly influenced its dynamics. The market experienced a bearish trend primarily due to weak demand from the weaving industry and an excess supply of PPFY. This imbalance led manufacturers to offer substantial discounts to clear their existing stocks, contributing to a further decline in prices. Adding to the uncertainty, the implementation of the Quality Control Order (QCO) on PPFY in India left industry players uncertain, prompting increased import orders from China to reduce procurement costs. India, witnessing the most significant price changes, saw a bearish trend as demand for PPFY remained subdued, with domestic players cautious in reducing inventory levels. The availability of cheaper raw materials, particularly polypropylene, and heightened imports from China due to delayed certification for Indian players played a crucial role in driving down prices. Despite these challenges, no plant shutdowns were reported during the quarter. The price of PPFY in India for this period settled at USD 1887/MT Ex-Mumbai.
Europe
The polypropylene filament yarn (PPFY) market in Europe saw a significant increase in prices recently, influenced by several interconnected factors. Firstly, there is a steady expansion in the market for PPFY, primarily propelled by the continuous growth of the downstream textile industry. This sector has increasingly adopted polypropylene filament yarn due to its advantageous properties and cost-effectiveness. At the heart of this development is the raw material itself, polypropylene, which has played a central role. The prices of polypropylene have consistently risen due to robust demand conditions, with end-industries eager to secure a stable supply of this essential material to maintain their manufacturing schedules. This dynamic between demand and supply has further contributed to the upward trend in polypropylene filament yarn prices. However, there was a subsequent drop in prices. This decline might be attributed to various factors, such as the availability of cheaper raw materials, specifically polypropylene, and potentially weakened demand from the weaving industry. The market's response to these influences resulted in a decrease in the cost of polypropylene filament yarn in India. The overall narrative reflects the intricate interplay of market forces, industry dynamics, and the pivotal role of polypropylene as a driving force in shaping the pricing trends in the PPFY market.
For the Quarter Ending September 2023
North America
During the third quarter, the Polypropylene Filament Yarn (PPFY) market in the US experienced unlike fluctuations, where the price trend declined in the first half of the third quarter while rebounded in the next half due to a surge in the production cost. During July, the demand from downstream textile industries remained moderate in this timeframe, as purchasing sentiment was largely restricted, especially in the first half. Increased interest rates and rising household debt made the local population more cautious about spending. However, in the early stages of August 2023, a minor uptick was observed in the prices of PPFY due to elevated production costs, which influenced the price of feedstock Polypropylene during this timeframe. Moreover, the demand for the product from the downstream textile industry has improved as the oversupply of PPFY in the US was eased in the second half of the third quarter, as domestic and international producers reduced production in response to low prices which has tightened the supply and support the upward momentum during August and September.
Asia
During the third quarter, the Polypropylene Filament Yarn (PPFY) market in India saw significant price fluctuations, with prices falling in the first half of the quarter and rallying in the second half amid the cost support from feedstock Polypropylene. During July, the PPFY industry faced a significant challenge due to a notable decline in demand from downstream textile sectors. Despite the inflation rate rising from 181 in June to 186.3 in July stated by the Government of India, the decrease in demand for PPFY, which is used in producing, home furnishings like carpets and upholstery, and textiles and apparel, had a cascading impact across the supply chain, resulting in an excess of stocked inventories. Therefore, to address this surplus and adapt to the sluggish market conditions, manufacturers were compelled to reduce their profit margins on PPFY to sell off the accumulated material. However, the prices rebounded in August and September as the high production of PPFY due to high-cost feedstock Polypropylene surged the market values of PPFY in the domestic market during this timeframe.
Europe
The German Polypropylene Filament Yarn (PPFY) market in the third quarter of 2023 saw mixed price movements, with prices falling in the first half and recovering in the second half. Manufacturers in the region considered production cuts in July due to low demand and smooth product availability. This was indicated by the declining German manufacturing activity, which led to a softer opening for the PPFY market amid a lull in demand from the downstream textile sector. However, in early August 2023, there was a slight increase in the prices of PPFY due to the initial softness as the economic conditions improved. According to the data, the Inflation rate declined to almost 4% during August, which led to increased trading activity across the eurozone and improved consumer sentiment. Furthermore, this increment was attributed to a parallel rise in the price of the feedstock Polypropylene over the same time frame which was adding the cost pressure and further contributing to the escalation of production costs for the PPFY during September.
For the Quarter Ending June 2023
North America
In North America, Polypropylene Filament Yarn (PPFY) prices showed a mixed picture. Initially, the market for PPFY deteriorated due to low production costs in the face of sharply declining demand fundamentals. In the middle of the quarter, downstream industries started to improve their operating rates as downstream demand from the textile industry increased. However, in June the market for PPFY deteriorated again, mainly due to the oversupply of inventories in the region. On the demand side, there was unsatisfactory demand from the home textile industry. Lower sales of carpets and sportswear had weighed on demand for PPFY. In addition, inflation and recessionary fears had a negative impact on consumer spending, which in turn had a negative impact on demand as consumers tried to save money amid the uncertainty in the market. As a result, manufacturers reduced their production activity due to high inventories and low purchasing activity in the region. The FRED data also showed that the output price index for the US market fell to 245.83 in June.
APAC
In the second quarter of 2023, the price of Polypropylene Filament Yarn (PPFY) showed a mixed trend, with prices fluctuating throughout the quarter. Initially, the market price of PPFY declined due to sluggish demand fundamentals from downstream textile industries. In addition, production costs in the region were also reduced by falling prices of raw materials such as polypropylene. Downstream industries also appeared unresponsive to demand from manufacturers of household products such as carpets and mattress covers. The downtrend in prices was further supported by the decline in Consumer Price Index (CPI), which fell to a more than two-year low of 4.25% in May 2023, according to the Ministry of Statistics and Programme Implementation. However, prices gained momentum in the middle of the quarter as there was partial increment in demand fundamentals but declined again sharply due to low offtakes from downstream industries. Meanwhile, the export market had also deteriorated in June 2023, with carpet exports falling by 15.43%, according to data from the Confederation of Indian Textile Industry (CITI). Finally, the price of PPFY declined and settled at USD 1678/MT Ex-Mumbai in June 2023.
Europe
Polypropylene Filament Yarn (PPFY) declined in the European market throughout the second quarter of 2023. The demand for Polypropylene Filament Yarn (PPFY) in the German market had experienced a period of sluggishness, signalling a continuation of the downtrend. Industry experts and analysts attributed this slowdown primarily to saturated demand fundamentals, resulting in ample yarn inventories at mills across the region. In addition, the Eurozone manufacturing PMI fell to 43.6 in June 2023, due to low production costs amid a slowdown in new orders. Although rising inflationary pressures in the region had a direct impact on consumer confidence and spending patterns, particularly in sectors heavily reliant on discretionary purchases such as textiles and apparel. As a result of subdued purchasing activity in the euro area, retailers and distributors had reduced their margins in order to sell off stock. In addition, factory staffing levels were also reduced for the first time since January 2021 due to the low operating rates of units.
For the Quarter Ending March 2023
North America
The price of Polypropylene Filament Yarn (PPFY) appears to have been erratic throughout the quarter, with a little fall in the middle of the period. It was noted that prices rose at the start of Q1 as a result of rising demand and a constrained supply of raw materials. The price of PPFY was also impacted by the rise in regional feedstock prices of Polypropylene. The market price of PPFY was also impacted by the decrease in demand and the hoarding of materials in warehouses. Prices typically decreased when a given material was abundant because of the excess supply. However, over the last month of Q1, it was seen that prices climbed steadily and slightly. Overall, the fluctuating price trend of PPFY in Q1 indicates that supply and demand in the market were changing.
APAC
The Polypropylene Filament Yarn (PPFY) market appears to have displayed a mixed pricing trend throughout the quarter, with prices rising for the most part and only falling in the middle of the month. The domestic feedstock Polypropylene factory was reported to be operating steadily throughout the quarter, and the market's spot supply was within normal limits. As a result, the increase in feedstock prices and the increase in restocking following the Spring Festival both influenced the price increases. The quarter also saw a temporary return to stability in demand from the downstream textile industries, while downstream procurement remained robust. Overall, the enthusiastic PPFY producers and the upbeat consumer mentality caused the prices to remain steady at USD 1640/MT Ex-Mumbai in February.
Europe
The Polypropylene Filament Yarn (PPFY) market during the first quarter of 2023 appeared that prices on the PPFY market fluctuated a little throughout the quarter. Early in the first quarter, it was reported that prices in Europe were increasing as a result of significant downstream textile industry demand. However, the reduced product prices seen in February suggested that demand from the home-textile sector had decreased, possibly due to modifications in customer preferences or alterations in market dynamics. Despite these fluctuations in demand, it was witnessed that the supply of upstream Polypropylene was adequate, and market participants remained optimistic about purchasing the material in bulk quantity. This suggested that the overall outlook for the PPFY market remained positive, despite the price fluctuations observed in the first quarter.
For the Quarter Ending December 2022
North America
The fourth quarter of 2022 saw a decrease in PPFY prices due to the local market's deteriorating outlook. The majority of weaving industries in the downstream sector were cautious while purchasing raw materials, and there was little trading or attention paid to demand. Orders on the domestic market kept declining, it was difficult to place new orders for the international market, and factory shipments slowed. Additionally, industries concentrated primarily on operational cuts as materials piled on the domestic market due to erratic demand. As a result, the price of Polypropylene feedstock decreased along with the decline in crude oil prices, which in turn contributed to the falling PPFY pricing.
APAC
The Asian Polypropylene Filament Yarn (PPFY) market shrank in the fourth quarter of 2022 due to weakened market sentiment. Declining demand expectations and rising supply were the main causes of the drop, and downstream industries were also under pressure. However, the domestic textile yarn business remained mostly constrained during the quarter due to lackluster buying and insufficient product production. Due to the huge levels of stockpiles that are now in place and the continued decline in polypropylene prices, market participants were adopting a wait-and-see attitude. As a result of the reduced Polymer rate and the declining demand from numerous downstream industries, including carpets, sportswear, and innerwear, PPFY prices were falling.
Europe
On the European coasts, the supply is being impacted by rising inflation rates. Trade services were affected by port congestion in the continent, particularly in Hamburg, which was caused by cargo bunching and cancellations as a result of strike activity. Furthermore, despite the fact that some players have been observed reluctantly raising stock levels in anticipation of an increase in demand during the quarter, PPFY demand is currently at a low level. However, a favorable purchasing environment and falling polymer costs led to a decline in PPFY prices in Europe. Due to the fall in European natural gas costs during the month of December, which also contributed to a false sense of security, natural gas prices were also considered to be relaxing.
For the Quarter Ending September 2022
North America
The third quarter saw a decline in the North American PPFY (Polypropylene Filament Yarn) market due to weak demand from the downstream Geo Textile Fabrics for manufacturing Filter Fabrics. The domestic PPFY market remained downward amidst adequate inventories and decreasing demand. Additionally, the price of feedstock polypropylene decreased, resulting in lower PPFY manufacturing costs. In the meantime, the product's price reduction on the domestic market was further supported by low-cost pressure and a sufficient supply flow. Also, Hurricane Ian's impact on Florida during the second half of Q3 disrupted production, but adequate stocks kept prices on the downtrend.
APAC
The Asian Polypropylene Filament Yarn (PPFY) market has been decreasing recently with bearish market sentiment. Downstream enterprises are mainly under pressure due to the rising supply alongside a weaker demand outlook. However, the domestic textile yarn industry remained largely suppressed throughout the week due to muted buying attitude and sufficient product manufacturing. Meanwhile, the current significant inventory levels and a further decrease in feedstock polypropylene costs have caused market participants to adopt a wait-and-see attitude. While a trader from Daman Poly thread Pvt. Ltd. reported that PPFY prices were declining due to the sinking Polymer rate and the declining demand from various downstream sectors such as carpets, sportswear, innerwear, and several other products. Therefore, the price for PPFY in the Indian market hovered around USD 1773/MT Ex-Mumbai during September.
Europe
Sufficient inventories, optimum production rate, and weakening market sentiments kept the market for PPFY dull throughout the quarter. Few traders even reported overflowing stockpiles, which had made them sell the product at discounted rates. PPFY (Polypropylene Filament Yarn) demand decreased from apparel, carpets, sportswear, and industrial yarns for technical textiles. Later as the energy crisis started in the European market, the market for PPFY started deteriorating. Also, consumer sentiments weakened, leading to a decline in the price throughout the quarter.
For the Quarter Ending June 2022
North America
In North America, Polypropylene Filament Yarn (PPFY) prices increased in the first half of Q2, which later started declining due to fluctuating feedstock Polypropylene prices. Compared to the previous quarter, North American supply conditions were more disrupted in this quarter. Manufacturers of polypropylene filament yarn (PPFY) were frantically searching for PP resins because the majority of polypropylene (PP) imports from South Korea and European countries were stuck due to disrupted supply, causing unavailability of material in the regional market. At the same time, downstream demand from the textile industry was balanced as consumers grew cautious as a consequence of the higher price of raw materials. As a result, the regional PPFY offers were supported by a tight supply, mild demand, and fluctuating raw materials.
APAC
Polypropylene Filament Yarn (PPFY) prices declined throughout the second quarter as demand for the product declined amidst rising cost pressure from its feedstock market. The inquiries from the Chinese players remained subdued due to the COVID-related restrictions across the region that dropped the sentiments of the domestic players. Demand from textile industries too dropped, aiding the reducing price trend of PPFY. In contrast, the raw material polypropylene market in India and the Southeast Asian region remained subdued, prevailing weaker market outlook this quarter. The overall supply fundamentals remain healthy, whereas the demand kept staggering downward, forcing the primary producers to reduce the offered quotations for PPFY in the Indian domestic market.
Europe
Due to the war between Russia and Ukraine in Europe, the Polypropylene Filament Yarn (PPFY) market witnessed an increment throughout the second quarter, owing to the shortage in raw material supply. At the onset of this quarter, Feedstock Polypropylene prices have been under pressure due to higher Crude oil prices. Further, the sturdy circumstance of the European buyers to procure Russian Oil cargoes from the black sea has coupled with the surged taxes at the Suez Canal, which provided additional cost support to the production of PPFY. Thus, soaring crude oil value contributed to the rising feedstock prices. Meanwhile, its demand from downstream Textile industries was strong to support price edging.
For the Quarter Ending March 2022
North America
Polypropylene Filament Yarn (PPFY) prices in North America rose throughout the first quarter due to rising feedstock Polypropylene prices. Supply conditions in North America remained disrupted compared to the previous quarter. With most Polypropylene (PP) going to the consumer durables sector, Polypropylene Filament Yarn (PPFY) manufacturers were heard scrambling for PP resins. The textile sector's downstream demand was balanced as buyers became cautious due to the high cost of raw materials. The regional PPFY offers were buoyed by limited supply and strong demand amidst high raw material costs. Thus, the price for PPFY settled at USD 2280/MT in March.
Asia Pacific
In APAC, Polypropylene Filament Yarn witnessed a hike in prices owing to the rising demand from the downstream textile industry. Polypropylene demand remained high in the carpet sector due to its lightweight and cost-efficient properties. Polypropylene filament yarn also rose in the Chinese market due to the increasing raw material Polypropylene. The demand was seen as stable because of the supply disruption caused due to the Russia-Ukraine war which consequently affected logistics. Therefore, prices for Polypropylene filament yarn in the Asia-pacific region rose and settled at USD 2088/MT Ex-Location.
Europe
Driven by the war-like situation, prices for Polypropylene Filament Yarn in Europe rose on the back of rising crude oil prices. The crude oil futures rose to its highest value in the past seven years affecting the downstream production of its derivative. Later, in the second half of Q1, the Russian war on Ukraine affected the market sentiment of all crude derivative products and caused supply disruption. There was port congestion and high freight which adversely affected the supply of the product to the international market making prices to settle at USD 2200/MT in Q1.
For Quarter Ending December 2021
North America
The downward trend of upstream Polypropylene in the American market is the result of an abundant supply of upstream Propylene from Canada, and it reflects on the price trend of PPFY in the last Quarter of 2021. The shutting down of more than 100 textile industries in America in 2021 shows the struggle of that sector to recover and this leads to the decline of demand in those industries. PPFY being majorly used in the Textile Industry had significantly low demand in the American market between October-November 2021 timeframe leading to the declining price trend. Thus, post witnessing market dullness for prolonged period amid ample availability, PPFY price maintained overall stability during the Q4 2021.
APAC
There was a continuous deflation of the upstream polypropylene (PP) prices in the final quarter of 2021 in China which led to a dip in prices of PPFY in December 2021. Despite the lower prices of upstream PP, the Production of coal-based PP was limited by the country’s new scheme to reduce the carbon impact on its economy, so to meet the demand of the downstream Textile industry the prices of PPFY inflated between October – November 2021. Meanwhile, in India, the trend is remarkably like the trend in China but the reason of the increased prices in India was highly impacted by the high increase in demand from the downstream Textile industry due to the festive season and the prices assessed around USD 2012/ MT in December due to high inventory and low demand post festive season in the downstream textile industry.
EUROPE
In Germany, the price of the upstream propylene gas was on a downward trend due to adequate supply from the Netherlands, and low demand from most of the polymers in the German market. Enough supply of upstream and low demand in the last quarter of 2021 in Germany supports the declining trend of the PPFY in the German market. The European market was able to keep the prices of polymers from spiraling up in the last quarter of 2021 due to improving the regional manufacturing and increasing in local capacities instead of depending on imports which contributes to the downward trend of PPFY in Europe.
For the Quarter Ending September 2021
North America
Supply conditions in the North American region improved compared to the previous quarter but continued material tightness was seen due to limited stocks of the raw material PP in the regional market. With majority of PP being diverted towards the consumer durables sector, some PPFY producers were heard scrambling for PP resins. Demand from the downstream textile sector was balanced as the buyers were reluctant to procure the raw material at surged cost. The downstream demand from textile sector was balanced, as purchasers became cautious over the high cost of raw materials. The regional PPFY offers were buoyed up by limited supply and strong demand due to high-cost feedstock.
Asia Pacific
Chinese PPFY market observed a negative impact due to rising inflation rates as surges in upstream Propylene pushed up the production cost of several PPFY manufacturers in China. Whereas the Indian manufacturing units were badly impacted after the second COVID wave restricted the commercial and market activities. Pressured under demand slowdown, PPFY prices traversed downward trajectory in India with Ex-works discussions settling at USD 1686 per tonne at the start of Q2. PPFY exports have been rebounding since July, as pandemic restrictions were eased by the government of India. Indian manufacturers observed hike in raw material prices, as consistent economic recovery pushed up the consumption. In addition, Indian government were tried to control steep price escalation of several fibers, as it was denting the downstream user’s margin. Thus, PPFY price rose significantly and revolved INR 145650/MT Ex-Depot Mumbai.
Europe
The supply conditions throughout the European region improved in comparison to the previous quarter, however tightness persisted in the European market amidst limited availability of the key raw materials. Due to the turnaround in several PDH units, key refineries curtailed the availability of the raw materials which impacted the production of PP-derived synthetic yarns. Several European buyers sought for the Asian cargoes in anticipation of better netbacks. Pricing trend remained upwards as suppliers preferred to transfer high-upstream costs to the end consumers.
For the Quarter Ending June 2021
North America
Supply conditions in the North American region improved compared to the previous quarter but continued material tightness was seen due to limited stocks of the raw material PP in the regional market. With majority of PP being diverted towards the consumer durables sector, some PPFY producers were heard scrambling for PP resins. Demand from the downstream textile sector was balanced as the buyers were reluctant to procure the raw material at surged cost. Limited supply with firm demand on back of high-cost feedstock propped up the regional PPFY offers in Q2 2021.
Asia Pacific
During the second quarter of 2021, the supplies of PPFY in the Asia Pacific region observed an improvement as inventory levels were ample to cope up with the end use demand from the downstream textile industries. However, the Chinese PPFY market observed a negative impact due to rising inflation rates as surges in upstream Propylene pushed up the production cost of several PPFY manufacturers in China. Whereas the Indian manufacturing units were badly impacted after the second COVID wave restricted the commercial and market activities. Pressured under demand slowdown, PPFY prices traversed downward trajectory in India with Ex-works discussions settling at USD 1686 per tonne at the start of Q2.
Europe
The supply conditions throughout the European region, improved comparatively to the previous quarter, however tightness persisted in the European market amidst limited availability of the key raw materials. Due to the turnaround in several PDH units and key refineries curtailed the availability of the raw material impacted the production of PP-derived synthetic yarns. Several European buyers sought for the Asian cargoes in anticipation of better netbacks. The pricing trend remained upwards as suppliers preferred to transfer high-upstream costs to the end consumers.
For the Quarter Ending March 2021
North America
In the first quarter of 2021, the inventories of Polypropylene Filament Yarn (PPFY) were tight as they were bound with the offtakes margin to produce essential commodities such as surgical mask, PPE kits etc. Various petrochemicals production unit shutdowns including several major producers such as Lyondell Basell, INEOS olefins and polymers amid deep freeze weather. The prices witnessed multifold surge during the quarter where traders became more flexible towards procurement from the Asian suppliers amid the hiked prices throughout the region.
Asia-Pacific (APAC)
During the first quarter of 2021, supplies were balanced throughout the region, owned to the growth in regional capacities as China commissioned four new plants including CNOOC and Shell JV. Whereas various Asian suppliers diverted their cargoes to cater the demand of western region in anticipation for better netbacks. The demand surged from the downstream markets as the resurgence of COVID in several parts in India hiked the offtakes of PPFY to manufacture PPE Kits and surgical mask. In India, Ex-depot prices of PPFY were assessed at USD 1774 per tonne in February.
Europe
The European regional PPFY market witnessed constraint supplies during the first quarter of 2021, as a repercussion of the shortage in feedstock Propylene. The regional upstream production slumped amid limited commercial and industrial activities and transportation hiccups in the northwestern European region. On the other hand, offtakes were constant from the downstream textile sector to manufacture PPE Kits and surgical mask. Thus, the triple digit hike on the prices of polypropylene proportionally hiked the prices of its derivative PPFY.
For the Quarter Ending December 2020
North America
Supply of feedstock Propylene remained feeble throughout amidst force majeure declared on some of the Propylene plant in Q4 following the spate of hurricanes in the Gulf region. Their demand for Polypropylene Filament Yarn firmed in Q4, as the consumption increased from manufacturing sector amidst the revival in market activities in the region. Furthermore, extreme winter season witnessed by the end of December also assisted in propelling its demand clothing segment.
Asia
Shortage of feedstock Propylene across Asia compelled some of the producers in the northeast Asia to reduce their operating rates at polypropylene polymerization facilities. A leading Polypropylene player in Northeast Asia remarked that they had no choice but to shut their plants temporarily for a week amid lack of feedstock availability in the region. As the demand in Q4 witnessed marginal improvement, after suffering from weak sales or most of the year, its prices also climbed to record breaking heights in the final quarter. Restocking for the winter season demand led to the further improvement in the demand fundamentals of the Propylene Filament Yarn. Freezing temperatures during winter in several parts of Asia it also supporting in increasing the sales of winter apparels thus and pushing the demand the Polypropylene Filament Yarn demand.
Europe
Polypropylene supply in Q4 was tight, largely because strict availability for feedstock Propylene across the globe amidst increased downstream demand. Because of the increased downstream demand many buyers anticipated that the feedstock cost will rise again in January, due to the early restocking. Poly Propylene filament yarn buying interests from various downstream sectors, especially from rope industry and container bag segment considerably picked up in Q4 2020. Fibers, yarns, and filaments performed well in Q4 amidst a viable increment in their demand from packing industry as well.
