Recently, PX supply tightens further with more PX units to be shut for maintenance in Q2 and PTA operating rate up continually to about 80%, and PX prices have been constantly increasing. PX-PTA spread keeps expanding. However, downstream polyester product prices are dull to follow up, and currently, PFY, PSF and PET fiber chip sees large losses.

Polyester plants, which originally holds wait-and-see mood, suffer large pressure, and a few PFY, PET fiber chip and PSF plants start to cut production or suspend operation.

For PSF market, Huahong plans to cut 600mt/d PSF production from Mar 25, and a few small plants also have plans to cut production, but have not announced. Besides, some plants intend to reduce production.

For the market views in Apr: PX plants still have many maintenance plans in Apr, and supply is hard to increase (See PX-naphtha spread breaks through $400/mt for more details). For demand, polyester yarn sales are unsmooth, and inventory continues to pile up. Besides, the market is also at a loss. Demand is expected to be weaker in Apr, and spinners have less ability to purchase feedstock.

Therefore, PSF market may be still under strong costs and weak demand in Apr. Low PSF spread may force plants to cut production further.