During the first quarter of 2024, Chinese Polyester Staple Fibre market experienced 1.6% increase compared to the last quarter of 2023. This rise was driven by increasing demand from the textile industry, supported by improvements in the post-pandemic economic environment. Manufacturers in China focused on maintaining balanced inventory levels, contributing to the steady price rise. Global factors, such as rising raw material costs and supply chain disruptions, also played a part in the upward trend of PSF prices during this period.
In the second quarter of 2024, the situation in China shifted as PSF prices experienced a decline. The drop was due to a softening in demand, which resulted in ample inventory for manufacturers. To manage this, production adjustments were made, further influencing prices. Globally, the Polyester market remained impacted by inflationary pressures and increasing feedstock Purified Terephthalic Acid (PTA) and Monoethylene Glycol (MEG) costs, though China’s manufacturers appeared cautious, keeping production aligned with current market conditions.
By August 2024, PSF prices in China were reported at approximately USD 1,355/MT, slightly lower than the previous quarter. This decrease is attributed to improving global supply conditions, with manufacturers balancing production output to avoid inventory buildup. Additionally, the global economic landscape, marked by uncertainty and fluctuating energy prices, contributed to more conservative inventory management, helping to prevent excessive price fluctuations in China.
Looking ahead to the fourth quarter of 2024, the outlook for PSF in China may remain uncertain. Prices may rise again as manufacturers could ramp up production to meet potential festive season demand. Global factors such as increasing feedstock PTA (Purified Terephthalic Acid), MEG (Monoethylene Glycol) and energy costs may continue to impact the market. Additionally, any shifts in global demand, particularly from key markets in Europe and North America, could influence Chinese manufacturers’ production and pricing strategies.