Global synthetic fiber prices decreased by 19 percent in January, marking the 16th year-over-year decline and sixth month of increasing drop in rate, says recent data from consulting firm PCI Fibres. Key reasons for the decline were: crude oil prices, which fell another 8 per cent in January, higher-than-normal fiber and fabric inventories, and slowing demand for fibers in China ahead of the New Year holiday.

In Asia, the world’s largest fiber-producing region, synthetic fiber prices fell by 21.7 per cent in the month, their biggest decline in more than two-and-a-half years. In China, polyester prices continued to fall in the first two weeks of the month, extending December’s trend, due to the sharp drop in crude oil prices and continued weak demand for fiber, but reportedly bottomed out mid-month and remained stable through the end of January as mills began to prepare for the lunar New Year break.

Staple prices fell to five-year low, ending January at prices more than 10 per cent lower than the prior month-end, and nearly 22 per cent lower for the year and filament prices dropped by 13 percent in January. Nylon (type 6) prices in China fell by more than 10 per cent in the month, following a sharp decline in raw materials prices. Caprolactam prices are reportedly more than 30 percent lower than this time next year.

Asian synthetic fiber prices are more than 23 percent below the world average. The European synthetic fiber price index fell by more than 21 percent, its biggest drop in nearly two and a half years, though European synthetic prices remained almost 20 percent above the world average. The US index fell by 13 percent, putting the US synthetic fiber prices index almost 60 percent above the global average.

www.thepcigroup.com