the higher discursive power to market prices of PSF plants does not mean the sustained profits

Of course, the higher discursive power to market prices of PSF plants does not mean the sustained profits. From the perspective of demand, demand weakens quickly since Oct with the multiple outbreaks of epidemic in many regions. Operating rate of spinning mills in Hebei reduced fast last week with epidemic-related control measures and some spinners cut more production or suspended for holiday. In general, demand is weakening. Since Nov, PSF Dec contract has risen by about 400yuan/mt and spot PSF prices lowered by 100yuan/mt, the price spread between spot PSF and PSF futures narrowed. Currently, PSF plant inventory is about 10 days, higher than last year, but tolerable. Viewed from supply and demand, the support to PSF is basically neutral, and inventory is supposed to accumulate.