Polyester market gains short-term support with partially recovering end-user market

Sales of polyester fiber improved intensively under low price since Aug. Stocks of PFY and PSF were very low by last week, and inventory of PSF has been lower than the earlier low appeared on Jul 2. Orders for PET bottle chip were tolerable and stocks were slanting low now. Thus, low finished goods inventory supported polyester products firmly. In addition, cash flow of many polyester products was during positive territory now.

Price and sales are both bullish for polyester operating rate, and plants that have turnaround or cut production before gradually resume production. The polyester polymerization rate is expected to be above 91% this week.