Will direct-spun PSF fall down after a continuous rise?

Direct-spun PSF has seen upsurge of 1,000yuan/mt or so in both futures and spot since early Dec when it rebounded from the bottom.

During Dec, downstream bought the dips and stocked up frequently as direct-spun PSF price stayed in low territory. Then as the costs of polyester feedstock sustained rising, direct-spun PSF followed to move up immediately in Jan, but the trades reduced at the same time.

In most of Jan, the sales ratio of direct-spun PSF kept less than 100%, indicating slight inventory accumulation yet the inventory of direct-spun PSF was still low.

That is, direct-spun PSF plants was not pressured despite continuous inventory accumulation. Recently, its price maintained rising alongside the costs amid the spike of crude oil. However, market participants showed divergent moods after the price increased to 7,500yuan/mt and above. Some of them restocked for post-holiday production while some still stood by cautiously.

As crude oil moves close to previous high and market keeps rising, risks of correction in short term get noteworthy.