Survival environment of direct-spun PSF market improves

After the May Day holiday, polyester feedstock prices tick down gradually and direct-spun PSF spread recovers. Till mid-May, the direct-spun PSF spread has recovered to above 1,000yuan/mt, to be a high level within the year.

With the higher PSF spread, some PSF plants that are shut previously restart successively, and by end May, PSF plant operating rate is expected to climb up to above 80%.

Recently, due to low prices of direct-spun PSF, buying from downstream market also increases. This year, spot PSF prices gain strong support when prices reach 7,000yuan/mt.

Viewed from downstream yarn market, polyester yarn market remains soft currently and inventory is high. However, polyester/cotton yarn sales are smooth and inventory reduces stimulated by higher cotton prices.

In general, the survival environment of direct-spun PSF market improves recently, but keep an eye on the fierce competition after operating rate climbs up.