Weekly Report: PSF (Oct.15th- Oct.19th)

This week, the price of polyester staple fiber was still in a stalemate in the market. The leading quotation centre kept stable. Although upstream raw material of PTA and MEG followed stable tendency, the cost side of upstream raw material still provided a strong backup for PSF market. However, the terminal market was difficult to improve. The wait-and-see mentalities of downstream yarn manufacturers were still strong, the purchase was cautious, so the trading atmosphere of PSF was not good and the actual transaction prices were varied. Concretely speaking, as for East China, the leading factory price of 1.4D direct spinning PSF focused on 11,000-11,100 Yuan/ton ended by the weekend, which slightly fell 50 Yuan/ton compared with the price at last week. In addition, the leading quotation centre of PSF in South China also dropped slightly. Hereinto, the cash quotation of 1.4D direct spinning PSF declined 50 Yuan/ton compared with the price at last week. The quotation focused on 11,100-11,200 Yuan/ton.

As for upstream market, PTA price was in weak consolidation this week. Now the price centre in spot market was little changed and kept stable, but the overall transactions were still general. As a whole, ended by Friday, the leading negotiating price of PTA was around 8,300-8,350 Yuan/ton in domestic market, which descended 50 Yuan/ton compared with the price at last week. Moreover, the price trends in overseas market stabilized, hereinto, the leading quotation of Taiwan cargo was about 1,110 dollars/ton and the leading negotiating price of Korea cargo was around 1,095-1,100 dollars/ton.

As for downstream market, the price of yarn was flat in the market this week and the transactions were not improved. The overall sales pressure was still great. Among these, the price of pure polyester yarn was weak and the quotations of most products strove to keep stable, but individual product price declined. The market price of 32S pure polyester yarn slid to 14,600 Yuan/ton, while the leading quotation of 45S slightly adjusted to 15,700 Yuan/ton. This week, the demands of pure polyester yarn also slid and the transactions were not good. The sales resistance was great and the whole transactions began to decline. Therefore, it was predicted that the price of pure polyester yarn would still remain weak situation in the short term.

Judged from current market, the inventory intentions were still weak in downstream market and the market participants all held wait-and-see mentality. So the actual transaction atmosphere of PSF was not good and there were some concessions during the negotiations in the market. Moreover, the upstream market was also in a stalemate. It was predicted that PSF market would still be weak slightly.