Seasonal demand tends to weaken later

Seasonal demand tends to weaken later. Sporadic replenishment of autumn and winter fabrics may appear. After sampling orders for autumn and winter were finished in May, some players may restock in Jun-Jul. Sales of dralon fabrics improve this week. However, these sporadic orders will be hard to mitigate the high inventory burden of grey fabrics. The operating rate of fabric mills is estimated to fall back in Jun with stunted sales, with monthly level down to around 68%.

The operating rate of PFY plants and polymerization rate also gradually peaks. The comprehensive operating rate of PFY plants rises to 83.2% this week, that of direct-spun PFY plants is at 87.5% and the polyester polymerization rate is at 92.8%, which is high compared with same period of previous years and lacks momentum to ascend further as downstream market has started weakening.