According to a latest monthly update from the International Energy Agency or IEA, world oil demand growth continues to lose momentum with 1Q24 growth of 1.6 mb/d, 120 kb/d below its previous forecast due to exceptionally weak OECD deliveries. With the post-Covid rebound now largely complete, and vehicle efficiencies and an expanding EV fleet acting as further drags on oil demand, growth in 2024 and 2025 slows to 1.2 mb/d and 1.1 mb/d, respectively. Non-OPEC+, led by the US, is set to drive world supply growth through 2025. For 2024, global output is forecast to rise by 770 kb/d to 102.9 mb/d. Non-OPEC+ production will expand by 1.6 mb/d, while OPEC+ supply could fall 820 kb/d if voluntary cuts remain in place. In 2025, global growth could rise to 1.6 mb/d. Non-OPEC+ is forecast to lead gains, rising 1.4 mb/d, while OPEC+ output could increase by 220 kb/d if curbs stay in place.

This does indicate that oil prices may see some cautious moves in near term given the moderating demand. However, the sustained worries over Russia-Ukraine war and Israel- Hamas conflict could keep sentiments volatile in near term. This can also impact manmade fibers prices.

Global Polyester Fiber Market In Great Shape

According to a report from ResearchAndMarkets.com, the Polyester fiber's estimated global market size is USD 102.2 billion in 2023, and it is anticipated to reach USD 151.6 billion by 2028. Between 2023 and 2028, this growth is anticipated to occur at a Compound Annual Growth Rate (CAGR) of 8.2%. The increasing demand for polyester fiber can be attributed to a multitude of significant factors. Firstly, the sheer versatility of polyester fiber renders it a prime candidate for an extensive array of applications, spanning from textiles and attire to industrial and technological uses. Its durability, resistance to creases, and straightforward maintenance have collectively catapulted it to being a favored choice within the fashion and home furnishings sectors.

Moreover, polyester's compatibility with other fibers, such as cotton, serves to enhance the performance of textile products. Furthermore, its cost-effectiveness and relative ease of production have firmly established it as the material of choice for manufacturers. In a world increasingly conscientious of the environment, polyester's recyclability and ongoing sustainability initiatives have bolstered its ascent in popularity, as more ecologically-friendly variants continue to emerge. Consequently, the demand for polyester fiber continues to grow across a wide number of industries, propelled by its adaptability, endurance, and eco-conscious innovations.

In 2022, the market for polyester fiber was dominated by the textile & apparel application. Polyester fiber's distinctive combination of attributes, such as exceptional durability, resistance to wrinkles, and color retention, render it a prime selection for textiles and clothing. This adaptability extends to a wide array of items, from everyday attire to high-performance sportswear. The textile and apparel industry has effectively harnessed polyester fiber's potential, creating an array of styles that cater to diverse consumer preferences and fashion trends, making it the industry's undeniable leader.

Outlook:

There has been a consistent increase in synthetic yarn imports from India. Government is likely to consider some measures to boost domestic production capabilities of synthetic yarns by offering subsidies and tax incentives to set up advanced manufacturing units.