Throughout most of May 2025, Polyester filament yarn (PFY) saw a significant price surge in both China and the US, led by narrowing supply and increasing costs of production. Supply shortages were caused by the dwindling availability of feedstocks, while demand was seen in mixed behavior with varying regional conditions being impacted by seasonality, inventory management, and evolving trade policies. Temporary relaxation of China-US tariffs also helped trigger a realignment of procurement plans for both markets.

In China, PFY prices increased continuously throughout May, supported by lower supply and higher feedstock prices. Major upstream producers, such as Zhejiang Petrochemical and Shenghong Refining and Chemical, reduced PTA production because of planned maintenance and declining operating rates, directly restricting PFY production. Consequently, market inventories declined, enabling domestic producers to raise prices to mitigate cost pressures and maintain margins.

Domestic consumption, on the demand side, however, was still held back. Downstream textile and weaving segments played safe, delaying bulk PFY purchases due to seasonal slowdown and high prevailing inventory from previous low-cost purchases. Though there were temporary spikes in sales during factory promotions, overall sentiment remained conservative.

Yet, export sentiment for PFY was in the process of recovery. US tariffs on Chinese imports decreased, making earlier postponed US-bound PFY orders more attractive. Consequently, some foreign buyers reinstated procurement and new order talks started up. This export business helped to sustain a modest increase in overall demand, though domestic interest was still cautious.

Correspondingly, PFY prices in the US market rose over the same period, roughly tracking the supply difficulties of Asian exporters. As Asian upstream feedstocks ran short and constrained production in PFY, US purchasers saw curtailed import availability. This constricted supply base overlapped with a seasonal peak in PFY demand for light textile uses, characteristic of hot summer months.

In addition, temporary tariff reprieve further encouraged pre-buying, with purchasers attempting to lock in against future prices. All these factors cumulatively pushed buying interest upwards, while overall inventory management measures were cautious in the face of economic uncertainty.

In the near term, PFY prices in both markets are likely to stay firm as underlying supply constraints and sustained demand recovery take time. In China, the return to production of PTA after maintenance could alleviate feedstock tightness, but any meaningful price correction will be dependent on ongoing export demand and local inventory readjustment. In the US, the window for the tariff pause might continue to drive near-term buying, although longer-term directions will rely on international trade patterns and seasonal demand stickiness.