By Our Staff Reporter
MUMBAI, MAY. 08
Domestic polyester demand was up 1% Y-o-Y during 4Q FY22; which was up by 22% from pre-covid level. PSF and PET demand growth was firm at 4% and 9% Y-o-Y respectively. However, PFY demand declined by 3% Y-o-Y amidst higher price volatility. Polyester demand growth for FY 22 was strong at 24% with re-opening of economies and rebound in consumption.
Full year demand growth was led by PFY (+31%) and PSF (25%). PET demand growth during the year was at 6%, informed Reliance Industries Limited, here. RIL said that the polyester chain margins averaged at $561/ MT during 4Q FY22 as against $631/MT in 3Q FY22 and $612/ MT in 4QFY21. PX margins improved Q-o-Q from a low base but continue to remain weak.
Qo-Q polyester chain deltas declined 11% with weak MEG and PTA margins due to high feedstock costs and capacity overhang. Downstream polyester margins were supported by high cotton- polyester delta and weak intermediate prices. High Volatility and uncertainty in feedstock prices led to slow down in global polyester markets.
Spike in energy prices due to ongoing conflict resulted in high processing cost across Polyester chain. Chinese market also showed weakness amidst the rising COVID cases. China downstream operating rates reduced, resulting in higher inventory with Polyester producers, RIL said.
On the domestic polymer demand front, RIL informed that it improved during the quarter with overall improvement in economy. During 4QFY22, overall demand improved by 3% Y-o-Y which was 16% above preCOVID level. (Source: Tecoya Trend)