China's polyester filament yarn market struggles as India's gains

Prices of Polyester Filament Yarn (PFY) in early December were mixed across the Asian market. In China, PFY prices trended downward due to sluggish demand and rising inventories. Weakening downstream demand and cautious buying strategies from weaving mills contributed to the price decline. While international oil prices provided some cost support, uncertainties surrounding future trade policies and oil price trends dampened market sentiment.

In India, PFY prices stabilized after an initial softening period. Stable feedstock costs and a gradual recovery in textile and apparel exports, particularly in apparel, supported the market. Government incentives and free trade agreements with key markets like South Korea, Japan, and Australia boosted India's export competitiveness. However, the market faced challenges from export volumes below pre-pandemic levels and potential disruptions from an upcoming dockworker strike.

Looking ahead, the PFY market in both countries is expected to remain volatile. China's market will be influenced by factors like downstream recovery, seasonal demand, and global economic trends. India's market will depend on the sustainability of export growth, feedstock costs, and the resolution of logistical challenges.