Polyester Prices in Indonesia might see an uptick amidst supply and production constraints
Indonesian polyester prices might witness a hike in prices as the current pullback on production might translate so. The Association of Indonesian Spun and Filament Yarn Producers has reported that numerous polyester factories in the country are at risk of halting production due to difficulties in procuring essential raw materials. This predicament is primarily attributed to stringent government import restrictions, leading to a scarcity of vital supplies necessary for the production process.
The issue is further severed by the fact that countries supplying mono-ethylene glycol (MEG), a key ingredient in polyester production, have reportedly stopped shipments pending clarification on government permits. This has placed the continuity of operations within the polyester industry in jeopardy, with concerns over the potential ripple effects on various sectors reliant on polyester, including textiles, automotive, and packaging.
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The restrictions are linked to specific government regulations, which have been identified as a major hurdle for the industry. The inability to access an adequate supply of raw materials not only threatens the production capabilities of polyester factories but also poses a broader risk to the supply chain and the economy at large.
According to Procurement Resource, Indonesian polyester industry is currently undergoing supply constraints amidst various geopolitical dynamics, lack of raw materials, and curbed shipments. Hence, the prices of polyester might see an increased trend passed on to consumers.
