Direct-spun PSF spread hard to expand under supply pressure

In the second half month of Mar, downstream demand has not improved apparently in the traditional peak season. Polyester yarn sales are ordinary, and inventory is piling up slowly.

PSF plants have restarted and recovered normally from the Spring Festival holiday, and some plants that are under maintenance previously also plan to resume operation gradually. By end Mar, PSF plant operating rate may rise to above 87%, basically recovering to the high level of last year.

For PSF inventory, it maintains at high level currently, and inventory is difficult to reduce after the holiday.

Therefore, PSF market will not only face the high inventory pressure, but also the increasing supply pressure due to higher operating rate. Direct-spun PSF spread is hard to expand further.