Polyester prices nosedive to multi-year lows across the world

In March 2020, polyester staple fiber (PSF) prices declined month-on-month in China as demand was weak and supply was abundant. Further, the global economic scenario affected the demand for PSF. Orders were being canceled and downstream production was suspended in the global markets, leading to a decline in demand. Prices in India and Pakistan were also lowered this month. In China, 1.4D PSF was down US cents 11 per kg as compared to February. In India, 1.2D PSF prices fell US cents 7 a kg from last month.

Polyester filament yarn (PFY) prices in March were down in China amid weak buying sentiment and higher inventory levels. Demand from the downstream units was dull as procurement was made with a cautious mood. In India, PFY offers were down this month. In Pakistan, PFY producers were soft this month. In China, POY 75/72 prices were down US cents 8 a kg in Shengze while Indian POY 130/34 prices were down US cents 9 a kg.

Polyester intermediate, mono ethylene glycol (MEG) prices in Asian markets plunged in March as markets faced bearish pressure by falling crude oil values and lengthened supply. In the US, MEG prices fell to a 17-year low due to lackluster market sentiment amid coronavirus outbreak. In Europe, the MEG market declined this month amid falling feedstock costs and diminishing demand. MEG price average fell by 16.2% in March while the US spot was down 8.8% for the month.

Polyester intermediate, purified terephthalic acid (PTA) markets in Asia declined amid abundant supply and weak sentiment. It was unlikely that PTA prices would get any support from the polyester markets in the short-term amid global economic downfall due to the coronavirus outbreak. In Europe, PTA prices dropped further in the wake of the coronavirus outbreak in the region. The average price of MEG in China fell by 14% from February.

Polyester chip or PET (Polyethylene terephthalate) chip prices in Asia dropped amid declining prices in the PTA and MEG markets this month. PET chip offers continued the downtrend last month as the market fundamentals did not see any substantial improvements. Offers for semi-dull chips decreased by 15% on the month and super-bright chip fell 13.9% month-on-month.

Feedstock, paraxylene (PX) prices in Asia witnessed multi-year lows in March in tandem with steep declines in the crude oil prices and amid weak market fundamentals. In the US, paraxylene markets fell further amid downward pressure from increasing import volumes, diminished demand, and new multi-year lows in the crude oil market. In Europe, paraxylene prices were also assessed down during the month. Asian marker, the CFR China fell 16.5% from previous month while European paraxylene was down 24.75%. In the US, spot paraxylene was down 30.87% month-on-month.

Ethylene prices in the Asian markets fell in March amid weak buying sentiment and thin trading activity. In the US, ethylene spot prices moved down to record low levels that month as falling crude was compounding muted demand from the coronavirus (Covid-19) outbreak. In Europe, the ethylene prices plunged further during the month. CFR FE Asia prices fell 20% from February while European spot was down 19.42%. US spot prices declined 22.5% on the month.

Courtesy: YnFx Weekly Textile PriceWatch Report