Fundamental data review of direct-spun PSF market in 2024

As 2024 comes to a close, some key data of direct-spun PSF 1.4D is reviewed to provide a better visual comparison of 2024 versus previous years.

1. A new low price ending, but the average price remains roughly the same as last year

In 2024, the price of direct-spun PSF rose first and then declined. In the first half of the year, it mostly maintained a narrow range of fluctuations. In early July, prices surged to a high of around 8,000yuan/mt, followed by a continuous decline, and by the end of the year, prices fell below 7,000yuan/mt, hitting a new low in two years.

From the perspective of the annual average price, this year's average price was at 7,397yuan/mt, which was basically on par with last year. Over the past four years, this price was considered to be at a medium level.

2. Processing spread fluctuates upwards, turning losses into profits

In 2024, the processing spread of direct-spun PSF gradually increased, reaching as high as around 1,600yuan/mt at mid-year. In the second half of the year, the profits significantly improved after plants supported the processing spread. For the entire year, the average processing spread was approximately 1,075yuan/mt, an increase of 122yuan/mt compared to last year, placing it at the second-highest level in four years.

3. Operating rate runs as high as possible under the high processing spread

In 2024, aside from the Spring Festival and the intensive production reduction in Aug due to support the processing spread, direct-spun PSF plants continued to run at high operating rate during the rest time, especially in the fourth quarter, plants tried their best to operate at full capacity, and even some idled capacities restarted. From an annual average operating rate perspective, it was 82.7% in2024, basically on par with 2023.

4. Yearly inventory reduces, and the average inventory is higher than 2023

In 2024, direct-spun PSF inventory accumulated and was high in the first and third quarters, while inventory reduced and was at a medium to low level in the second and fourth quarters. From an annual average inventory perspective, it was 15.6 days, which was at a high level compared to the past four years. This was also a sacrifice made for high processing spread.