Polyester yarn prices expected to drop in upcoming period: TexPro

28 Apr '21

2 min read

Pic: Shutterstock

Owing to weak crude oil prices, higher freight rates and lower demand due to second and third waves of COVID-19 pandemic in different parts of the world, the prices of polyester yarn are expected to decline in the upcoming period. Polyester yarn prices increased in February 2021, and moved up further in March as crude oil prices continued to rise.

The average FOB China prices of 100 per cent polyester yarn of 32s was $1.75 per kg in January 2021. This price increased by a sharp 12 per cent and rose to $1.96 per kg in March 2021 compared to the January price. But the price is anticipated to move down to $1.60 per kg in June 2021 with a drop of 18.37 per cent from the average price in March 2021, according to Fibre2Fashion's market intelligence tool TexPro.

The average price of polyester filament yarn, DTY 150/48, FOB China was $1,125.24 per metric ton in January 2021. It showed a considerable growth and increased to $1,327.39 per metric ton in March 2021 over the price in January 2021. The price is expected to dip slightly to $1,245.00 per metric ton by June 2021 with a decline of 6.21 per cent.

The price increase in February 2021 has been attributed to the price rise of crude oil due to frosty weather in US and in expectation of inflation. The supply of raw materials for polyester yarn, such as paraxylene and purified terephthalic acid (PTA), was tight. This supported the polyester cost side. Also, the stocks of PFY were low in February 2021 and speculative demand was sound.

In March 2021, prices of polyester increased further with higher price rise in crude due to increased tensions in the Middle East, lower crude inventory reported by the US EIA (Energy Information Administration) and API (American Petroleum Institute) and the weakened US dollar.

Fibre2Fashion News Desk (RKS & JL)

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