The global synthetic fiber price index fell by 8.3% in November, its fourteenth consecutive monthly decline and biggest monthly drop in more than two years, according to recent data from consulting firm PCI Fibres.
Declining prices of crude oil, intermediates and cotton have contributed to the drop, as has overcapacity in fiber and raw materials production in Asia for both nylon and polyester.
In Asia, the world’s largest fiber-producing region, synthetic fiber prices fell by 11 percent in the month, their biggest decline in six months.
In China, polyester prices declined early in the month, then bottomed out and started to rise slightly. The increase was expected to be short-lived, however, as crude and cotton prices showed no signs of firming and excess capacity is growing.
Nylon prices dropped steadily over the last four weeks in China, with the price of 70-denier nylon 6 prices down almost 2 percent in the month. Spandex prices have remained stable due to tight supply and plants running at full capacity. Spandex makers have enjoyed improved margins due to significantly lower intermediates costs.
In India, polyester declined for most of the month.
Asian synthetic fiber prices are more than 22 percent below the world average.
The European synthetic fiber price index fell by almost 10 percent, the biggest plunge in more than two years, though European synthetic prices remain almost 19 percent above the world average.
The U.S. index fell by 1.5%, putting the U.S. synthetic fiber prices index at more than 55 percent above the global average.