direct-spun PSF market is facing periodical digestion

Looking from the previous increase, it is mainly driven by crude oil and the impacts of dual control on energy consumption. The shortage of international energy supply could not be eased at present, which will lend strong support from cost side. In terms of the direct raw material, PTA will see recovery of operating rate recently. Honggang’s 2 million tons/yr and Yisheng’s 6 million tons/yr PTA units are in resumption, which will push the operating rate up to 72% from 12%. From polyester side, Tongkun and Xinfengming will further cut or suspend PFY production and the operating rate of polyester will decline 2% to less than 80%. Therefore, PTA will face inventory accumulation in Oct and may weaken slightly. As for direct-spun PSF, affected by the dual control on energy consumption, many plants which cut or suspended production have not confirmed when to restart, so the operating rate will stay low, providing robust support for the price of direct-spun PSF. The processing spread also shows uptrend.

Besides, high inventory will be hard to appear for direct-spun PSF in Oct from the supply and demand performance.