MethodologyContact usSupportLogin
The global market for fibers used in nonwovens production faced strong pressure in March, amid tensions between the United States, Israel and Iran, which affected global supply chains for raw materials, raised costs and squeezed margins across the segment in North America and Europe, according to sources heard by Fastmarkets throughout March and early April.
Natural and synthetic fibers for nonwovens are primarily consumed in the personal care segment, including baby diapers, adult incontinence products, feminine hygiene and wipes, while other applications, although smaller in volume, include healthcare (such as masks and medical gowns), filtration and uses in the construction and automotive industries.
According to Fastmarkets’ price assessments published on April 1, reflecting March benchmarks, different grades of polyester, polypropylene and viscose fibers, as well as superabsorbent polymer, recorded increases in the US and Europe, ranging from 4% to 11% compared with February.
The crisis in the Strait of Hormuz, through which around 25% of global seaborne oil trade flows, is putting pressure on feedstock supply and costs, driving up naphtha prices and, consequently, the prices of polymers such as polyethylene (PE), polypropylene (PP) and polyethylene terephthalate (PET), mainly in Europe, which are converted into fibers and widely used across the nonwovens value chain.
Meanwhile, polymer suppliers in the US told Fastmarkets that they increased exports to Europe in March and that, as a result of this shift, stronger demand from European buyers put upward pressure on prices, leading to a sharp increase in feedstock costs for the production of synthetic fibers in the US.
“About half of the nonwovens market is struggling to cope with rising costs in Europe. This increase in raw material costs, particularly polyester and polypropylene, has been greater than the price pass-through we have been able to achieve with end customers,” a European market participant said.
They added that the natural fiber chain, including both standard and specialty viscose, typically used in the production of nonwovens for hygiene applications such as wet wipes, diapers and feminine hygiene products, has raised strong concerns among sources amid a stagflationary environment. “There is significant pressure, resulting from a strong combination of constrained supply, rising prices and weakening demand. Prices are really increasing in March while demand is declining.”
A second source said that the disruption seen in the US, Europe and other regions is also expected to be reflected in the nonwovens market in Latin America, possibly in June, with the delay driven by shipping lead times for imports and the consumption of local inventories. Part of the supply chain serving countries such as Brazil, for example, is supplied by Israel, where PET fiber prices have risen sharply.
“PET fiber prices in Israel have already increased by 28% since the beginning of the war. In the case of Chinese suppliers, the adjustment is happening at a slower pace, but it is also taking place,” the source said, adding that regionally there have not yet been price pass-throughs in Brazil, as local inventories are still sufficient to meet domestic demand.
In addition to raw material costs, transportation and energy costs are also factors putting pressure on the global nonwovens market.
The US nonwovens association INDA issued a statement on April 14 calling on global leaders to act to contain the growing energy crisis triggered by global conflicts.
“Energy is a critical input in every stage of nonwoven production, from raw material processing and fiber extrusion to web formation, bonding and finishing. Many of our member companies, which operate energy-intensive facilities throughout the world, are already facing significant increases in operating expenses,” the association said.
INDA added in a statement that there is a risk of reduced affordability of nonwovens used in medical, hygiene and air and water filtration applications, as well as in other segments such as automotive and packaging, due to the sharp increase in costs, noting that the impact is greater among small and medium-sized companies.
The global price increases in March, compared with February, were more limited for fluff pulp, with list prices rising by 3.2% in the US and Europe, while net prices in China increased by 4.2%, reflecting tighter supply following mill closures in North America and growing difficulties in maintaining global supply flows, particularly in the Middle East and North Africa.
The expectation shared by several sources is that the global nonwovens market is likely to remain tight in April, with continued price adjustments, as the ongoing instability in the Strait of Hormuz and the Middle East continues to cause disruptions and supply chain challenges.
For deeper insights into price trends and market dynamics, explore Fastmarkets’ comprehensive coverage and analysis of the global nonwovens and forest products industry. Learn more.