Downstream polyester margins were supported by high cotton-polyester delta and weak intermediate prices, the company said in its consolidated results for quarter and year ended March 31, 2022.

High Volatility and uncertainty in feedstock prices led to slow down in global polyester markets. Spike in energy prices due to ongoing conflict resulted in high processing cost across the polyester chain. Chinese market also showed weakness amidst the rising COVID cases. China downstream operating rates reduced, resulting in higher inventory with polyester producers.

“Domestic polyester demand was up 1 per cent year-over-year (YoY) during 4Q FY22; which was up by 22 per cent from pre-COVID level. PSF and PET demand growth was firm at 4 per cent and 9 per cent YoY, respectively. However, PFY demand declined by 3 per cent YoY amidst higher price volatility. Polyester demand growth for FY22 was strong at 24 per cent with re-opening of economies and rebound in consumption. Full year demand growth was led by PFY (+31 per cent) and PSF (25 per cent). PET demand growth during the year was at 6 per cent,” the company said.

Fibre2Fashion News Desk (KD)