HC virgin PSF: low operating rate and high costs

After the Chinese Lunar New Year holiday, crude oil prices have been constantly rising, and polymerization costs keep advancing. Driven by surging PX price, the polymerization costs hit 8,000yuan/mt on Jun 7, rising further to 8,300yuan/mt on Jun 8, a new high since 2019.

With unsmooth sales, HC virgin PSF plant operating rate is low, below 60% currently, and the cash  flow faces larger losses. Price spread between HC virgin PSF and HC re-PSF enlarges, and competition from new capacities of HC virgin PSF is fierce.