Polyester Filament Yarn prices rise in China

Polyester Filament Yarn (PFY) prices in China increased by over 1.1 per cent in late October 2024, driven by a combination of factors. A shortage of Monoethylene Glycol (MEG), a key PFY feedstock, has tightened supply. The recent maintenance shutdown at Xinjiang Zhongkun's ethylene glycol unit further exacerbated this issue, leading to higher input costs for PFY producers.

Despite supply challenges, demand from the downstream polyester sector remains robust. Manufacturers are operating at high utilization rates to meet increasing demand for winter textiles. Additionally, businesses are restocking inventories in anticipation of higher orders in the coming months, further supporting the price trend.

China's manufacturing sector showed signs of recovery in October, with firms increasing purchasing activity and building up inventories. This improved business sentiment has contributed to a stable demand for raw materials, including PFY.

The PFY market in China is expected to remain under upward pressure in the short term. The continued scarcity of MEG, high feedstock costs, and strong demand from the textile sector suggest that PFY prices could see further gradual increases throughout the final quarter of 2024.