PSF Price is Fluctuating

    Since the beginning of 2011, the PSF price is fluctuating. The upstream raw materials cost, polyester market, cotton price and downstream yarns market demand all influenced the PSF price.

There are four developing stages of the change in PSF market:

From the beginning of 2011 to May, PSF market appeared fall “V” trend. During the period of greatly growth of cotton, PTA, polyester price, the PSF market is also favorable in the cold winter, the main market quotation increased continuously and once rose to 15,200 Yuan/Ton. But, the glorious time is just a short moment. With the finishing of cotton bull market, the weak cost support and low downstream demand, the PSF price began to drop for about three months and reached the new lowest point in recent half year, and the drop rate was 17%.  

At the beginning of June, the weakened PSF market finally improved when the upstream and downstream market improved, cotton market rebounded, and the EU anti-dumping policy towards Chinese PSF lasting for 6 years finally finished. But from June to September, PSF market was still fluctuating. During this fluctuating period, PSF price increased relatively and reached the high point of 14,100 Yuan/Ton pushed by the cost. But, the growth trend was unsustainable.

In September and October which would be the peak season, PSF price dropped dramatically. The expectation of peak season will drive the market turn warm has been destroyed. The whole PSF market was sluggish, and the low downstream demand had been the biggest restricted factor. In addition to the weak support of upstream cost, weak cotton market and Europe debt crisis, the drop trend of PSF became more serious. The PSF drop trend lasted for about two months; the market quotation was weak as a whole and mainly dropped to 10,700 Yuan/Ton, which was the new lowest point in the second half of this year. When compared to the high point in February, the drop rate was about 30% and the pressure of PSF factories increased gradually. 

When entering the middle of November, PSF market stopped dropping and the main quotation rebounded after touching bottom. The PSF price increased mainly because the unexpected favorable news. In addition to the strengthened upstream raw materials cost support, improved polyester market, and action of limiting production to keep price of PSF factories, the PSF market had been saved. It is estimated that the PSF growth trend will not be sustainable when the market demand didn’t turn warm truly and the further influence of Europe debt crisis was unsure, and it is more difficult to return the price level at the beginning of this year.