test


Member ID:
Password: 
Stay logged in for 30 days
Forget Your Password?
close

login CCFGroup App

Insight | Time:Oct 13 2017 3:02PM
Favorable and unfavorable factors wrestle in direct-spun PSF market
 
Text size
“Big fluctuation” is the word for direct-spun PSF market this year. Though the price dipped down in recent days, it is still at a yearly high level. And whether this dip marks a down-turn is yet to be settled. 

In the first three quarters, virgin PSF trended in the form of “V”, ranging from 7,260-9,015yuan/mt. In the first half year, virgin PSF slumped by 18.7% from 8,935yuan/mt to 7,260yuan/mt influenced by plunging commodity market. Later amid rebounding commodity market and solid waste import ban, virgin PSF soared by 24.2% to 9,015yuan/mt.


In Oct, polyester feedstock fell and polyester inventory increased. And as demand for replenishment did not obviously increased after the National Day holiday, an air of caution prevailed at the market. Thus virgin PSF kept inching down in recent days, totaling a fall of 100-150yuan/mt. For all the favorable and unfavorable factors in the market, the unfavorable are gaining strength.

Favorable factors
Inventory not high on the whole


Though sales was sluggish during the National day holiday and inventory increased, the level now is still low on the whole, supporting plants’ confidence.

Firm re-PSF market

One big contributor for the hike of virgin PSF price in Sep was surging re-PSF prices. In Oct, against the inching down virgin PSF, re-PSF prices still stood firm, which to much extent limits the fall of virgin PSF price in recent days.

Unfavorable factors
Expected rising supply

Zhejiang Hengyi plans to restart in Oct and Zhejiang Kangxing to increase operating rate. If they both increase production as scheduled, operating rate of virgin PSF is expected to climb to over 90%. What’s more, Chuzhou Anxing’s intention to increase production may exacerbate supply surplus.

High-standing cash flow

Virgin PSF cash flow continued to increase since Sep and kept over 1,000yuan/mt since late of the month. If supply increases, plants to seize market share, are very likely to sell products at expense of cash flow.

Expectation of upstream and downstream market players bearish
PTA market players are concerned about the impact of restart of units of Zhejiang Yuandong and Fujian Xianglu. And demand for polyester yarn is expected to weaken, coupled with the yarn price fall of 200-300yuan/mt in Fujian due to sluggish sales, virgin PSF market will be negatively impacted.

These factors wrestling with each, virgin PSF fall thus is limited. Yet if demand sustains slack, when inventory increases to the normal level, plants may greatly lower the price to boost sales. Hence in the coming week, sales is crucial to the market.
Related Articles
Polyester staple fiber market daily (Oct 18, 2017)
Polyester staple fiber market morning express (Oct 18, 2017)
Polyester staple fiber market daily (Oct 17, 2017)
Polyester staple fiber market morning express (Oct 17, 2017)
Polyester staple fiber market daily (Oct 16, 2017)
Polyester staple fiber market morning express (Oct 16, 2017)
Polyester staple fiber market weekly (Oct 9-13, 2017)
Polyester staple fiber market morning express (Oct 13, 2017)
Polyester staple fiber market daily (Oct 12, 2017)
Polyester staple fiber market morning express (Oct 12, 2017)
 
Research
The meanderings of 2017 China state cotton auction
Brief introduction of VSF overseas markets
China cotton yarn market pattern analysis
Sales&production of Indian, Pakistani and Vietnamese cotton ...
Cotton production and consumption structure analysis in ...
 
 

浙公网安备 33010902000742号