polyester yarn sales increased and the inventory declined to 24 days from 27 days

Along with the rebound of raw materials early this week, polyester yarn sales increased and the inventory declined to 24 days from 27 days. However, it is afraid not to sustain. Recent improvement in trade mainly lies in: 1. The inventory of raw materials in weavers is generally low. In early Jun, polyester yarn was driven up to 13,300yuan/mt by the rise of PX, but moved down smoothly to current 12,000yuan/mt, providing no appropriate opportunity for restocking. Meanwhile, downstream buying for rigid demand has sustained for over one month. 2. The raw materials rally. Since the US and Europe released CPI data on Jun 10, the concerns about economic recession has shadowed the market and bulk commodities quickly dropped in general. PSF slid from 9,300yuan/mt to 7,800yuan/mt until last Friday overnight. The spread between spot PSF and PSF futures also hit unprecedented 1,000yuan/mt. It is common to restock when meeting the rise of raw materials, so not only polyester yarn, PFY and PSF also saw increases of sales