Direct-spun PSF supply pressure increases with high operating rate

Since May, cash flow of HC virgin PSF and low-melting PSF and direct-spun PSF spread has been improving or recovering. In Jun, the condition has generally recovered to year high or new highs.

With the improvement on profits and direct-spun PSF spread, plants that are shut or cut production previously restart gradually. In Jul, direct-spun PSF plant operating rate increases to 85%, and it may increase further to above 86%.

In terms of the maintenance plan, only Fujian Xinghong plans to shut its 20kta PSF unit for two weeks, and Chuzhou Xingbang plans to cut output by 70mt/d in mid-Jul. Therefore, plant operating rate may maintain above 85% in Jul, and supply may hit year high in Jul.

However, polyester yarn market remains not good, with high inventory and production reduction. In Jul, PSF inventory accumulation accelerates.

In Jul, PSF market faces higher pressure from weak downstream market and excessive supply of own. Currently, players wait to see the when will the speculative demand and replenishment demand under the expectation of buoyant season the second half year come.