energy shortage including crude oil, coal and natural gas triggered the rise of costs

However, it surged from the end of Sep. Looking from the cost side, energy shortage including crude oil, coal and natural gas triggered the rise of costs. From figure above, it can be seen that polyester feedstock increased more than direct-spun PSF, especially MEG. That is to see, the hike of direct-spun PSF this time was mainly contributed by polyester feedstock. In terms of the inventory, the product inventory in direct-spun PSF plants was high, while that in spot-futures traders was few left. In spinners, the stocks of raw materials were adequate at 20-40 days. From the perspective of downstream demand, the operating rate of polyester yarn and polyester/cotton yarn slumped in Sep-Oct affected by electricity restriction. Currently, the power restriction is centered in Jiangsu and Zhejiang. According to the policies, the operating rate will keep low for some time. Overall, direct-spun PSF now stays in tight balance with improved cash flow. But on the other hand, the demand from polyester yarn was weak, and the spinners show little intention to replenish raw materials or lock raw materials according to their orders. They may intensively procure until early to mid-Nov. In short run, direct-spun PSF will keep volatile at high level and swing alongside the feedstock.