Direct-spun PSF welcomes a good start pushed by costs

Crude oil prices continued to go up during the Spring Festival holiday, with a 7% increase compared to the level before the holiday. After the holiday, downstream spinners are active to inquire, and plant offers also rise by 50-100yuan/mt mostly. Traders also narrow the discounts, and prices increase by 150-200yuan/mt. Semi-dull 1.4D PSF is mainly talked at 7,400-7,600yuan/mt currently.

After the holiday, spinners also raise the yarn prices. Polyester yarn and polyester/cotton yarn prices move up by 200-500yuan/mt mostly. But spinners reflect that orders have not started after the holiday, and currently, they mainly conclude the pre-holiday orders.

During the holiday, direct-spun PSF plant inventory increased somewhat as sales were stagnant and logistics were suspended. But with some contract goods and overseas sales, PSF inventory has not increased much compared with PFY, but the level remains high.

In terms of downstream market, feedstock inventory in spinning mills is low, mostly at one to two weeks. And some spinners have resumed operation from Feb 15, some late around Feb 21-24. Spinners are active to restart after the holiday, so the demand for PSF may increase gradually later.

Stimulated by the costs and post-holiday replenishment demand, direct-spun PSF market is expected to be optimistic and prices are likely to go up.