In China, the trend of Polyester Filament Yarn (PFY) prices was mixed in October 2025 – price was stable in the first half, dropped in mid-month, then stabilized at the end as downstream demand was picking up.
In early October, PFY prices in China remained stable, underpinned by structurally solid supply fundamentals, and falling feedstock costs. Prices of the major raw materials-PTA and MEG-continued to slide, reducing production costs and maintaining good operating margins for PFY producers. Manufacturing sentiment improved across major textile hubs such as Zhejiang and Jiangsu, where stronger industrial output indicated upward efficiency in operations.
However, demand-side sentiment was subdued for PFY since buyers have emphasized operational flexibility amid an uncertain global trade environment. Despite the 3% year-on-year increase in retail sales in a sign of incremental improvement in consumer spending, manufacturers in the textile space opted for a short-term procurement strategy instead of building forward inventories. Export orders remained depressed because of lingering concerns over tariffs, despite easing diplomatic frictions with key trading partners.
Prices of PFY began to decline in mid-October as post-holiday market activity weakened sharply. Trading remained slow after the National Day and Mid-Autumn Festival holidays, and PFY inventories started to accumulate across production hubs. The absence of cost-side support further put downward pressure on market sentiment amid continued declines in PTA and MEG prices, weakening producer confidence and prompting discount-driven selling to ease stock pressure.
Reduced buying interest from weaving and knitting mills exacerbated the imbalance, forcing suppliers to adopt discounting strategies to stimulate offtake. The overall tone of the PFY market turned bearish as sellers focused on inventory reduction and cash flow maintenance.
In late October, PFY prices stabilized during the week ending October 31, following earlier decline. Most market transactions were small and fragmented as both buyers and sellers were getting used to the prevailing inventory levels. On the cost side, MEG prices remained flat, while a limited recovery in PTA provided some, support to filament prices.
Seasonal demand improved with the onset of cold weather in southern China, as garment producers started stocking up in preparation for winter clothing production. Better offtake for fleece and thermal fabric applications cushioned the blow and prevented further price slippage, improving supply and demand balance to some extent.
In the weeks ahead, Chinese PFY prices are likely to see moderate increases into early November, supported by seasonal demand and decent activity in the knitting industry. The cold air arriving sooner than expected has boosted confidence in the PFY market, and fleece-based product lines are faring reasonably well in both domestic and export channels. With feedstock price recovery still uncertain, a stable operating rate and healthy textile order books should underpin gradual price improvement.
