The sustained depression of PSF makes a dent in the vitality of the market

The sustained depression of PSF makes a dent in the vitality of the market and the wait-and-see attitude adopted by downstream also hamper the sales of polyester yarn. In a long period time, small and medium-sized spinners were forced to cut production and operating rate in Zhejiang, Jiangsu and Hebei declined. In the meantime, end-user fabric plants ran at low rate. Looking from the chart below, the operating rate of polyester yarn mills in Jul-Sept was much lower than that in the same period of last year. Generally, spinners are not active in production cut considering production cost and labor sustainability, but this year, a large amount of small and medium-sized plants reduce production and some small plants even suspend production, which also indicates the sluggish market at present.