Escalation of Russia-Ukraine tensions influences sales of direct-spun PSF

Crude oil had an upsurge close to $100/b amid the outbreak of Russia-Ukraine war this afternoon. PTA was also influenced and rocketed by 531% amid additional maintenance plans released. Accordingly, PSF futures followed to jump with an increase of 4.23%.

In the morning, some spinners procured raw materials but more stayed on the sidelines, and the sales ratios of direct-spun PSF plants were mostly within 80-150%. But in the afternoon, restocking exploded and the sales ratios of direct-spun PSF plants generally reached 100-400%, some higher even to 500%.

In the meantime, direct-spun PSF plants raised offers actively by 100-300yuan/mt, promoting the prevailing traded price up to 7,600-7,800yuan/mt.

After this round of restocking, direct-spun PSF plants got less burdened by inventory.

However, the restocking may not sustain long partly due to little improvement in end-user orders and partly due to the concerns about the downward risks of crude oil. Now prevailing traded price of direct-spun PSF maintains rising gradually under the support of the costs. It is suggested focus on crude oil, polyester feedstock and the implementation of maintenance of PTA units.