HEBEI WEAVER TEXTILE CO., LTD.

24 Years Manufacturing Experience

Recent direct-spun PSF market operation sketch

During the National Day holiday, direct-spun PSF prices have been constantly rising driven by continual higher oil prices. PSF prices rise by about 400yuan/mt, and plant offers generally stand above 8,000yuan/mt. Traders increase the selling volumes at the level of 7,900-8,000yuan/mt, dragging down the upward space.

On the first trading day after the holiday (Oct 10), PSF futures market climbed up largely, while entered the adjustment in the second day. Spot cotton market is covered under the looking-on mood, and downstream spinners mainly digest previous replenishment.

Spinners mostly maintain the yarn prices during the National Day holiday, so cash flow sees larger deficits after the holiday. Under the cost pressure, some spinners rise moderately, but with less increment, only 100-200yuan/mt. So currently, the cash flow of polyester yarn and polyester/cotton yarn keeps negative.

Therefore, viewed from the fundamental, downstream demand remains poor. The polyester costs giving support to PSF market also go downward. In short, PSF market may be adjusted weakly, but plant inventory is not high, and prices are mostly under negotiation.

For the market in Nov and Dec, PSF market is expected to fluctuate weakly as PTA market sees capacity expansion and downstream demand may gradually weaken, unless oil prices or macro environment has sudden stimulus. PSF plants are suggested to operate with low inventory.


Post time: Oct-27-2022