Rising Raw Material Costs Drove a Slight Increase in the Polyester Filament Market in August

In August, the polyester filament market in India saw a modest price increase, primarily driven by rising raw material costs, according to data from the SunSirs commodity market analysis system. The average price of mainstream POY 150D/48F in the Jiangsu-Zhejiang region began the month at 8,525 RMB/ton, eventually rising by 2.84% by the end of the month.

Initially, the market experienced low volatility due to the off-season in the textile industry, characterized by high temperatures and limited autumn/winter fabric orders. Downstream weaving mills were cautious, purchasing only as needed, which led to a sluggish trading atmosphere. Early in the month, PTA prices were stable, and with slim processing margins, manufacturers had little motivation to adjust prices.

However, by mid-August, international crude oil prices rose due to geopolitical tensions, which in turn drove up the prices of PTA and ethylene glycol, increasing production costs. This, coupled with maintenance at PTA plants that tightened raw material supplies, led polyester factories to raise their quotes, pushing polyester filament prices upward. Despite this, downstream acceptance of higher prices was limited, and market sales volume did not see a significant surge.

Looking ahead to September, the market is expected to experience high-level fluctuations with limited potential for a sharp increase. The supply side remains controlled, but with the recovery of processing profits, some factories may resume or increase production, potentially capping price increases. Demand remains uncertain as the traditional "Golden September" peak season approaches, with high raw material costs squeezing weaving profits and limiting downstream players' willingness to chase prices.

Stay ahead of market trends with the Credco app. For any queries, please reach out via WhatsApp at +91 8448083211.