Global Polyester Staple Fiber Prices Surge in Early April Despite Feedstock Costs Falls

Throughout the initial half of April 2024, global Polyester Staple Fiber (PSF) prices continued to rise due to significant demand from downstream industries. However, during this time, the costs pressure from PSF feedstock remained subdued, attributed to ample inventory and the volatile nature of the crude oil market.

In the European region, PSF prices saw an overall increase during the first half of the month. In Germany, prices rose by approximately 0.4%, fueled by high demand from domestic downstream industries. Moreover, freight charges during this time also impacted the overall trading, leading to higher PSF prices. Meanwhile, PSF feedstock prices in the European market, particularly in Germany, experienced declines, with Mono Ethylene Glycol (MEG) and Purified Terephthalic Acid (PTA) prices dropping by approximately 3% and 5%, respectively. Despite this, crude oil prices saw a slight uptick during the same period.

Similarly, in the US market, PSF prices increased by approximately 0.4% during the first half of April. This rise was driven by heightened demand from domestic downstream industries and costly imports from the Asian market. Meanwhile, PSF feedstock prices experienced a slight decrease of around 4.4% for Mono Ethylene Glycol during the period, attributed to ample inventory and robust operations.

In the Asia-Pacific region, PSF prices continued to rise due to strong international demand and replenishment activities in the domestic downstream market. During this period, PSF prices in the Chinese market surged by approximately 0.5%. However, after initially increasing due to new orders from the international market, prices later cooled down due to and slightly increment in inventory levels. Domestic procurement remained high during this time, supported by uninterrupted operations. PSF feedstock prices, including Mono Ethylene Glycol (MEG) and Purified Terephthalic Acid (PTA), decreased by around 2.4% during this period. Additionally, PTA prices followed a similar trend, initially rising before decreasing. Despite unexpected shutdowns of several PX equipment sets, cost support remained strong in the initial week. Fluctuations in crude oil prices contributed to overall price volatility, while MEG remained weak and fluctuated within a narrow range. Despite high inventory levels and low feedstock prices, along with average demand from downstream industries, manufacturers and traders found themselves compelled to reduce prices.

Additionally, marine freight charges, which played a supportive role in overall trade of PSF, remained at lower levels. However, during the first half of April 2024, marine freight charges from China to North Europe saw an improvement of approximately 1.4%, whereas freight for the East American route decreased by more than 10%.

According to ChemAnalyst, the increased demand from downstream markets for PSF has led to heightened production, putting pressure on manufacturers to increase their output rates. Moreover, it is anticipated that demand from downstream industries will continue to rise in the coming weeks, accompanied by an improvement in product supply.