Direct-spun PSF output rises largely in Q2, 2024

In the second quarter of 2024, direct-spun PSF plant operating rate has remained at a high level, averaging at about 86%, up 7% from the same period of last year.

In the second quarter of 2022 and 2023, as feedstock prices surged and PSF prices were dull to rise, direct-spun PSF spread once dropped to 500-600yuan/mt. Plants cut production or shut down successively. This year, feedstock market is range-bound and market fluctuations are small. Though direct-spun PSF spread maintains at 700-900yuan/mt, plant inventory pressure is not large, and plants run steadily.

In terms of the monthly output in the second quarter, year-on-year growth is positive and the direct-spun PSF output is likely to rise by 15% year on year, while the growth in the first quarter was only 5%.

This year, PSF sales are smooth, mainly attributed to the smooth sales of polyester yarn. Since 2024, polyester yarn inventory has declined compared to the same period of last year and operating rate is also higher year on year. In previous years, from mid to late May, spinning mills will cut production successively. But this year, till the Dragon Boat Festival (mid-Jun), some plants start to cut production. Though spinners also reflect that orders are decreasing, operating rate can maintain as the inventory pressure is not high.

For the supply in the third quarter, currently, most plants run at full capacity, and the further improvement space is limited. New capacity expansion is limited with large uncertainties. Coupled with the possible power rationing due to high temperature this year, the monthly growth of output may decline. In addition, operating rate of PSF plants was high in the third quarter of last year, so the yearly growth is also supposed to be limited.