Direct-spun PSF prices at a low for the year

Before the National Day holiday, favorable macroeconomic factors drove the stock market and commodities significantly higher, leading to an increase in spot PSF prices, which continued to rise during and after the holiday. However, following this period, the enthusiasm for macro speculation diminished, and the financial markets generally corrected, causing the price of direct-spun PSF to decline. By late Oct, the price has fallen to its lowest of the year, completely reversing the gains made since late Sep.

From last week, more downstream spinners tend to purchase direct-spun PSF at low level, mostly at 6,950-7,100yuan/mt. Currently, the feedstock inventory in spinning mills increases to about half a month.

Last week, most of the raw materials for the spinning mills came from traders, leading to a significant reduction in traders' inventory recently. Starting this week, the willingness of PSF factories to sell has also strengthened, and the frequency of price reductions has increased. As a result, PSF factories have begun to reduce their inventory, but due to certain feedstock inventory in spnning mills and generally average sales of polyester yarn recently, the replenishment of feedstock has been limited, and the inventory reduction efforts of PSF factories are also constrained.

Currently, market prices have been at a low level. Although the demand outlook for the future appears weak, there is reluctance to short the market. However, considering the absolute price, there also seems to be a lack of fundamental support for going long. As a result, the market is mostly in a wait-and-see attitude at the moment.