The Russia-Ukraine war (2022-Present)
The Russia- Ukraine war led to major disruptions in global energy supplies, particularly affecting natural gas and crude oil markets, as Russia is a key exporter of these resources. Since polyester is derived from petroleum-based products like PTA (Purified Terephthalic Acid) and MEG (Monoethylene Glycol), the war’s impact on crude oil prices had a direct effect on PSF production costs. The conflict resulted in soaring energy and feedstock PTA and MEG costs, which caused polyester prices, including PSF, to rise sharply in 2022.
COVID-19 Pandemic (2020-2022)
The COVID-19 pandemic had a dramatic impact on global supply chains, leading to sharp fluctuations in PSF prices. In early 2020, lockdowns and factory shutdowns caused disruptions in production and logistics, resulting in supply shortages and price increases. As demand from the textile and apparel sectors plummeted during the pandemic’s peak, prices dropped sharply. However, with the recovery phase in 2021-2022, demand surged as economies reopened, causing prices to rise again due to limited supply and logistical constraints.
China’s Environmental Regulations and Shutdowns (2017-2018)
In 2017, the Chinese government implemented stricter environmental regulations aimed at reducing pollution. This led to the shutdown of numerous textile factories and chemical plants involved in polyester production. The reduced output caused significant supply constraints, pushing PSF prices higher both domestically in China and globally. The regulations particularly impacted the polyester supply chain, as China is a major global producer of polyester fibres and feedstocks like PTA (Purified Terephthalic Acid) and MEG (Monoethylene Glycol).