Though PET flakes prices lower by 100-200yuan/mt partially, the supply remains tight

Some plants reflect that the “good start” after the holiday is too short. In Jiangyin of Jiangsu Province, some plants even say that plants that restart earlier intend to cut operating rate. If the inventory keeps accumulating and downstream demand sees no improvement, re-PSF plants are likely to cut operating rate or suspend operation in late Mar and Apr.

While, the consolation is that the fundamental of polyester feedstock market is tolerable, and polyester operating rate may climb up further later. Pay attention to the orders in Mar and Apr. For re-PSF, the downward space may be limited with the support of costs, and the market mainly concerns about the inadequate orders, which makes market confidence lack. Keep an eye on the downstream demand.