China and U.S. Polyester Filament Yarn(PFY) Markets Display Contrasting Trends as Weather and Logistics Impact Prices

The prices of Polyester Filament Yarn (PFY) displayed contrasting trends across major markets. In China, prices initially increased before retreating toward the end of the month, while in the U.S., they continued to decline throughout the period. As China grapples with fluctuating demand tied to its local weather and production cycles, the U.S. market remains affected by softer consumer sentiment and easing logistical pressures.

PFY prices in China initially rose, driven by expectations of increased demand following forecasts of colder temperatures in late November, which were anticipated to boost interest in thermal fabric products. Eased typhoon-related disruptions and lower freight costs further bolstered producers, enabling them to maintain high operating rates. However, the optimism was short-lived.

As the anticipated nationwide drop in temperatures was delayed by prolonged late summer heat, downstream demand for thermal fabrics remained subdued. This led to cautious procurement behaviours among weaving enterprises, resulting in elevated PFY inventory levels, and reduced operating rates in some regions. The cautious sentiment surrounding raw material prices and future orders amplified the downward price pressure on PFY. This trend mirrors the late 2023 scenario, where colder weather briefly revived demand but failed to sustain momentum.

Meanwhile, in the U.S., PFY prices continued their steady decline during the same period. Reduced shipping costs from Asia to the U.S. West Coast, driven by a sharp drop in ocean freight rates, alleviated import costs. Increased vessel availability on the Asia-West Coast route eased prior space constraints, further driving down logistics expenses.

While East Coast rates remained stable due to high demand and capacity constraints, the overall shipping environment softened, contributing to reduced cost pressures on imports. Adding to the downward trend, the U.S. textile sector faced slower growth, with subdued consumer demand and a decline in retail sales. These factors, compounded by cautious inventory management by retailers, have kept PFY prices on a declining trajectory in the U.S.

Looking ahead, the divergence in PFY price trends between China and the U.S. is likely to persist. In China, any rebound in PFY prices will depend on whether the forecasted cold wave materializes and provides a significant boost to domestic thermal fabric demand.

However, manufacturers remain wary of overproducing amid cautious downstream sentiment. In the U.S., ongoing logistical improvements and slower retail activity are expected to sustain the downward pressure on PFY prices. Seasonal factors, including the upcoming holiday season and potential tariff adjustments, may influence demand, but any significant recovery is unlikely in the near term.