Due to damaged crops and after floods in Asia last year the industry is suffering a global supply crisis in cotton. Supply constraints resulted in global cotton prices reaching the highest level since the fiber trading started 140 years ago. A stronger demand on Polyester substituting cotton as well as low PTA inventories lead to further price hikes across the polyester chain. The markets in Asia, Europe and America are moving up steadily in prices to reflect higher feedstock costs and higher quotes from Asian suppliers.
Freudenberg Nonwovens adjusted the prices accordingly in January and shared the costs with reduced margins. “However, since costs are steadily increasing the current prices are no longer reflecting the reality of our industry. As a temporary measure all our shipments will carry a Polyester surcharge. Our customers will be informed in the next days,” said John McNabb, managing sirector Freudenberg Spunweb North America.
In Europe, near-term PTA and PET prognosis on pricing are for a further rise in February and March. To compensate this increase internal measures will be continued. “Nevertheless, we will have to pass costs partly to our customers,” said Marc Schmidt, director marketing and sales for Tuft & Automotive segment. European customers will be informed of at least 10% price increase starting mid February.