Synthetic fiber prices witnessed decline by 2.5 percent in July

In Asia, the world’s largest fiber-producing region, the prices of synthetic fiber witnessed decline by 2.5% in the month July compared to the same month last year after rising during a few weeks in June. Though an improvement compared to June’s 4 percent drop, there is no indication that demand has return to normal in Asia.

However, in China rationalization of polyester supply has kept prices from dropping further. Polyester prices are being pressured by falling cotton prices and a lack of strength in mill demand.

Asian nylon (polyamide) prices increased in the month due a 7.2% surge in the price of caprolactam, a key ingredient for nylon. While, Spandex prices due to soft demand were down slightly in June.

Asian synthetic fiber prices are almost 21 percent below the world average.

The global synthetic fiber price decline that began late last year and intensified in early 2014 continued to be tempered somewhat in July, according to consulting firm PCI Fibres, newest data.

The index measuring the average price for acrylic, nylon, polyester and polypropylene filament yarns and staple dropped by 0.9% in July, less than June’s 2.5% drop, and the smallest monthly decline in 10 months.

The European synthetic fiber price index was up by 2.4%, the only regional increase, pushing European synthetic prices almost 24 percent above the world average.

The U.S. index plunged negligibly, putting the U.S. synthetic fiber prices index at almost 46 percent above the global average.

Today, fashion preference for synthetic fibers over cotton has been more than offset by slow global demand for apparel and other textile products, particularly in key Chinese and North American markets.