Polyester Filament Yarn Gains Ground with Increased Substitution to Other Fibers

In the coming months of 2024, the Polyester Filament Yarn (PFY) industry is poised for continued growth, building on the momentum observed in the previous year. The sector experienced a remarkable surge in domestic production in 2023, compared to the previous year. This growth reflects the industry's robust expansion, driven by both increased production capacity and heightened domestic consumption.

The demand for PFY reached a significant height in 2023, marking a notable year-on-year increase. This surge in apparent consumption indicates a significant and heightened demand for PFY in the domestic market, underscoring its pivotal role in driving the overall expansion of the industry.

However, since mid-January, there has been a continual upswing in polymerization costs, which has, in turn, led to an increase in PFY prices. The rise in polymerization costs can be attributed to various factors, such as fluctuations in raw material prices or increased production expenses. Because of the increased PFY prices, downstream spinners, have found it challenging to absorb these higher costs. The reluctance or inability of downstream spinners to readily accept the elevated PFY prices has resulted in a situation where pre-holiday replenishment, which typically involves stocking up on materials before holidays or peak demand periods, is not occurring on a large scale.

Two key factors contribute to PFY's continued success in 2024. Firstly, the transformation of purchasing and sales models in textile and apparel companies has led to the emergence of seasonal fast-selling products, such as summer sunscreens, winter jackets, and down jackets. PFY's large capacity and fast production pace make it well-suited to meet the requirements of short and large-scale production for these products.

Secondly, PFY boasts excellent economics and notable price advantages. Technological advancements in PFY have led to various product performance improvements, allowing it to effectively substitute for other fiber products with specific performance requirements. For instance, high elastic fibers can replace spandex fibers, ultra-fine fibers and moisture-wicking fibers can substitute for nylon fibers, and cotton-like fibers can replace cotton yarn and blended yarn, among other substitutions.

While the growth rate of PFY capacity is expected to slow down in 2024, production is still anticipated to increase. Additionally, the trend of PFY substituting for other fiber products with specific performance requirements is expected to persist, contributing to the sector's continued growth and adaptability in the ever-evolving textile industry landscape. Overall, 2024 is anticipated to be a year of sustained growth for the PFY industry, characterized by its ability to meet diverse market demands and its ongoing role as a versatile and economically advantageous fiber option.