The Polyester Staple Fibre market remains volatile due to robust demand

The Polyester Staple Fiber market remained volatile in its price trend in the second week of April, owing to the stable demand from downstream industries. The cost pressure of feedstock Purified Terephthalic acid & Mono-Ethylene Glycol stabilized with fluctuating crude oil prices. Further, with ease in China’s lockdown, the demand fundamentals in the regional market have improved along with higher orders from overseas markets. Therefore, the polyester staple fiber prices increased and settled at USD 1300 FOB-Shanghai on 15th April.

Crude oil, upstream of Polyester Staple Fibre, which observed a downward trend last week, has recently rose and reached to USD 107.94/b on 19th April. The PTA market was solid, whereas MEG prices stabilized, resulting in firm cost pressure on Polyester Staple Fiber.

Despite the stable demand, the significant players are compelled to increase their prices due to the cost pressure from crude oil, causing a higher production rate. Therefore, Hengyi Petrochemical, Jiangsu Huahong increased their price by USD 15/ MT, whereas Jiangsu Huaxi, Fujian & Jiangsu, and Zhejiang increased their quotation by USD 8/MT from the previous rate. The processing fee also rose by USD 142/tonne, with a 29% improvement in sales as the demand from the furniture industry increased because of its uses in cushions and sofas filling.

According to the sources, downstream demand from textile remains weak, whereas the home furnishing sector is just picking up orders. Meanwhile, the inquiries from the overseas market remained strong to keep the prices firm. Additionally, the weaving industry has sufficient stock of raw materials to run their units at an optimum rate.

As per ChemAnalyst,” As the production of Polyester Staple Fiber ramped up due to rising prices of raw material, it pressurized the manufacturers to increase their rate. Furthermore, the demand from downstream industries is also anticipated to rise in the forthcoming weeks, along with an improved supply of the product.”