In the first quarter of 2024, prices for Polypropylene Filament Yarn (PPFY) in India saw a slight increase of 1.8% compared to the previous quarter. This uptick was attributed to a combination of factors, including a modest recovery in demand from the textile sector and increased feedstock Polypropylene costs. Furthermore, ongoing supply chain disruptions and logistical challenges continued to impact the availability of raw materials, adding upward pressure on costs.
By the second quarter of 2024, PPFY prices in India experienced a further increase. This rise was driven by several factors, including heightened demand from both domestic and international markets as manufacturers ramped up production in anticipation of seasonal needs. Additionally, improvements in export orders contributed to this upward trend. The overall economic environment showed signs of recovery, with brands redirecting their orders from other countries to capitalize on India’s manufacturing capabilities.
As of September 2024, PPFY prices in India reported a significant decline, falling to approximately USD 1,580 per metric ton. This drop is linked to various global factors, such as decreasing Crude Oil prices and reduced demand due to economic slowdowns in key markets. The easing of feedstock Polypropylene costs also played a role in this price reduction, as manufacturers adjusted their pricing strategies in response to changing market conditions. Supply chain disruptions continued to affect production costs, leading to increased caution among manufacturers regarding inventory management.
Looking ahead to the fourth quarter of 2024, PPFY prices are expected to increase as manufacturers prepare for potential increases in demand during the festive season. Anticipated production ramp-ups may lead to price increases if demand surges significantly. The prices of feedstock Polypropylene is anticipated to increase during this period, and it may continue to affect PPFY pricing dynamics during this period.