Fundamental review of direct-spun PSF market in Q1, 2024

1. Smaller price fluctuations

In the first quarter of 2024, the macro environment changed little and direct-spun PSF prices mainly fluctuated following the feedstock market in the range of 7,200-7,500yuan/mt.

2. Low direct-spun PSF spread

Direct-spun PSF price spread kept range-bound at 600-900yuan/mt in the first quarter of 2024, averaging at 768yuan/mt, down from 919yuan/mt in the same period of 2023, and the market was in a loss status.

3. Normal operating rate

In terms of the operating rate, direct-spun PSF plant operating rate dropped to around 60% during the Chinese Lunar New Year, and recovered gradually after the holiday, to 85-90% by end Mar, basically the same with the trend of previous years. In the first quarter of 2024, the operating rate averaged at 77.4%, basically flat compared to last year, but down 1.5% from 2022.

4. High inventory

Chinese domestic demand was weaker in 2024 compared to 2023, and as volumes of products held by traders reduced, logical inventory in PSF plants was relatively high. It was at 17.5 days in the first quarter of 2024, up 4.1 days from the same period of 2023.

In general, the direct-spun PSF market operation was weaker in the first quarter of 2024 compared to the same period of 2023.