As terminal demand does not improve, sales of PFY may be hard to continue improving

As terminal demand does not improve, sales of PFY may be hard to continue improving. Whether price of PFY can rebound will depend on the macro atmosphere and oil price. If macro market presents good atmosphere and oil price continues increasing, price of PFY may slightly climb up driven by cost side, while the stimulus from market fundamental fails to emerge temporarily. Downstream demand will not improve fundamentally before late-Aug. According to the survey made by CCFGroup, the actual demand is pessimistically estimated to not grow until late-Sep, rather than late-Aug. In addition, the demand in peak season may be lower than anticipation and the improvement is likely to be limited, which may last for around one month, from late-Sep to early-Nov. Speculative demand is anticipated to appear earlier than the real demand but it will rely on the performance of feedstock futures