In the third week of April 2025, the price of polyester filament yarn (PFY) followed a divergent pattern in China and the United States, influenced by differing market fundamentals and external policy factors. The sharp drop in polyester prices in China contrasted with the steady market in the United States, underscoring the varied impact of macroeconomic and policy factors on regional pricing patterns.

PFY prices in China fell 2.2% on a week-on-week basis, as the producers struggled with deteriorating cost profiles and moderated demand. The American government's 145% tariff on Chinese imports imposed a widespread market uncertainty that has warped sentiment in the energy and raw material markets. Decreasing feedstock PTA prices have provided no support on the cost side, and weak cost pass-through mechanisms have lingered to tighten manufacturer profit margins. Furthermore, over-capacity along the polyester chain from upstream makers to downstream fabric mills, spurred a cutting back of production rates across the major regions. With consumers hesitant to stock up in a falling market, PFY manufacturers were facing margin squeezes and had to reduce prices to handle oversupply and slow inventory turns.

Conversely, PFY prices in the United States held firm, buoyed by a balance of stable demand and prudent supplier tactics. The textile industry, an important downstream user of PFY, experienced some growth, with U.S. retail apparel sales increasing by 1.4% in March, supported by improved household budgets due to income growth, declining energy prices, and increased tax refunds. This apparel recovery assisted in mitigating the potential adverse effects of continued trade policy uncertainty, which has resulted in market caution. Although the International Apparel Federation (IAF) continues to voice concerns regarding tariff impact, major PFY exporting Asian markets have opted to stabilize prices with the aim of securing long-term trading relationships. This strategy has helped ensure a steady flow of PFY imports, preventing significant price fluctuations in the U.S. market. However, consumer apprehension over the possibility of tariff-induced price hikes has led to a "wait-and-see" approach among buyers, contributing to the overall price stability and limiting market volatility.

In the future, PFY price movements are likely to remain divided between the two markets. China prices might continue to be under pressure from high stocks and weak downstream recovery, while the U.S. market might maintain its stability if consumer spending continues to be strong and suppliers keep focusing on long-term trade continuity. Though, as tariff negotiations continue to transpire and macroeconomic environments continue to shift, the price chart for PFY could witness increasing volatility again with any substantial policy changes potentially upending price movements in both markets.