Polyester Filament Yarn (PFY) prices in both China and the United States exhibited relative stability throughout December 2024, despite some fluctuations driven by shifting demand dynamics and regional challenges. In China, PFY prices initially declined but later stabilized. In the U.S., prices also held steady, supported by stable import pricing, reduced logistics costs, and conservative procurement practices from downstream sectors. The broader market sentiment in both regions reflected a cautious approach, tempered by year-end seasonality and operational constraints.

In China, PFY prices saw a brief decline in early December, driven by weak domestic sales and accumulating inventory levels at downstream plants. However, as the month progressed, prices stabilized, bolstered by a slight recovery in end-user business, especially towards the year-end. The low price of PFY prompted downstream players to stock up on materials, anticipating minimal price drops before the Lunar New Year. Additionally, foreign trade activity improved, with a notable rebound in both PFY and fabric exports. Despite these positive developments, new orders remained weak, and market participants maintained a wait-and-see approach in the domestic market, contributing to a stagnation in overall market activity. With limited optimism for immediate growth and rising supply pressures, the PFY market in China is expected to remain relatively flat in the short term.

In the United States, PFY prices remained stable throughout December, in line with subdued market conditions in the Asian supply chain. Lower freight charges and stable Asian pricing provided a solid foundation for consistent import costs into the U.S. market. Downstream demand, particularly from the textile sector, remained restricted as buyers limited their procurement to immediate needs due to cautious sentiment during the seasonal year-end slowdown. Although feedstock PTA prices showed minimal change, contributing to price stability, external factors, such as the ongoing negotiations between the International Longshoremen’s Association (ILA) and port operators, posed potential risks. A strike at key East and Gulf Coast ports, if realized, could disrupt supply chains, and exacerbate existing logistical challenges, potentially impacting PFY supply availability and prices in the near future.

Looking ahead, the PFY markets in both China and the U.S. are expected to face a continuation of current trends into the early months of 2025. In China, the market's performance will depend on the degree of end-user recovery and foreign trade demand, though inventory levels and cautious market sentiment suggest limited upside potential. In the US, the potential ILA strike looms as a significant risk to supply chain stability. If a strike occurs, it could lead to significant disruptions in PFY imports and potentially impact domestic prices. Overall, market participants in both regions are expected to navigate a period of uncertainty, with limited price movements anticipated until demand conditions improve, and logistical concerns are addressed.