Polyester Filament Yarn (PFY) prices in China recorded no change during the week ending 26 December 2025, owing to the rising supply of material stemming from recent capacity additions and weak seasonal demand as well as delayed winter fabrics orders.
The Polyester Filament Yarn (PFY) production in China continued to grow towards the end of December, thanks to major capacity increments and smooth operating environments at principal production sites. While PTA prices increased by 5% during the current week, this didn’t lead to increased production costs, as majority PFY-manufacturing entities continued using stockpiled feedstock materials. MEG prices remained unchanged, adding to overall cost stability.
On the production scene, overall PFY capacity in China has risen above 3 million tons during the year, with several production facilities coming on-line during December. This has ensured a constant increase in market supply. With capacity increases, smooth feedstock supply, and constant production, there has been sufficient supply in the market despite reduced downstream demand. This has ensured that PFY plant inventory build-ups continue as the gap between supply and demand widens.
Demand for PFY was flat and seasonally weak, with mild winter weather weighing on demand from the textile sector. The lagged arrival of winter apparel demand restricted new order placements, while most earlier orders had already been fulfilled. Operating rates at chemical fibre weaving factories in Jiangsu and Zhejiang slid from 69.5% to 65.5%, indicating lower production rates and cautious procurement.
Downstream weaving and texturizing units mainly purchased on demand, showing little desire to build inventory amid uncertain end-user demand. Positive factors were few and far between, supporting PFY inventories to continue their uptrend. Industry players maintained a wait-and-see attitude, and producers carried out selective production cuts last week. Many factories are also preparing for scheduled maintenance in January, which would further cut raw material feedstock consumption, including PFY.
Looking forward, PFY prices in China are expected to remain pressured, with the market tending to remain range bound as demand remains weak. The production and sale statistics of the PFY industry have remained below expectation, with many PFY downstream manufacturers operating at a loss.
While occasional discounts have encouraged short-term demand, this has done little to address the underlying problem of declining demand from end users. With many textile manufacturers looking to advance the onset of holidays and with downstream sentiment being pessimistic, there is little cause to be optimistic about a short-term market reversal at present. With abundant supply and weak demand, PFY prices are expected to remain stable to weak in January 2026.
