Polyester Filament Yarn (PFY) prices in both China and the U.S. experienced upward momentum in January 2025, driven by a combination of supply constraints, rising feedstock costs, and pre-holiday stockpiling activities. In China, PFY prices were supported by reduced production levels and increased demand ahead of the Spring Festival, while in the U.S., higher import costs and logistical challenges contributed to the price hike. Despite these increases, market activity is expected to slow as seasonal factors and weather-related disruptions take hold, creating a mixed outlook for the near term.

In China, PFY prices increased in the month of January 2025, as higher feedstock PTA costs and reduced production levels drove a tightening of market supply. Direct-spun PFY plants have been implementing scheduled maintenance and production cuts, which have lowered operating rates and constrained available volumes. In response, downstream industries strategically stockpiled raw materials ahead of the spring Festival, thereby intensifying demand and prompting businesses to raise prices.

Despite the initial upward movement, as the month progressed, many downstream enterprises began curtailing operations in anticipation of the holiday period. Ongoing support from cost dynamics and improved demand from overseas markets has helped maintain price stability, setting the stage for a temporary but firm adjustment in China’s PFY sector.

In the United States, PFY prices have similarly increased, driven primarily by rising import costs and the anticipation of new tariffs. Buyers, aware of a proposed 10% duty set to take effect on February 1, 2025, have engaged in stockpiling to offset potential cost escalations. Early in the month, a resolution to a looming port strike—resulting from a tentative six-year contract agreement between the International Longshoremen’s Association and the United States Maritime Alliance—provided a measure of operational stability.

However, severe winter weather later disrupted operations along the East and Gulf Coasts, as seen with the temporary closure of Port Houston on January 21. These disruptions, coupled with reduced production in China ahead of the Lunar New Year, have further tightened PFY supply, encouraged pre-emptive purchasing and supported price increases.

Looking ahead, the PFY market is expected to face a period of reduced activity as seasonal factors and logistical challenges persist. In China, trading is likely to slow significantly during the Spring Festival, with limited price movements anticipated until post-holiday demand recovers. In the U.S., the combination of weather-related disruptions and the upcoming tariff implementation may continue to influence supply dynamics and pricing. Market participants in both regions are expected to navigate a cautious environment, with PFY prices likely to stabilize once seasonal pressures ease and supply chains normalize.