Prices of polyester filament yarn in China inched up in June and the situation is expected to continue in July. As for downstream market, many weaving plants saw thinner business in June compared with April-May but the run rate was largely high, except for the reduction in some weaving plants and water-jet looms in Changshu and Wujiang affected by political issues.

Rigid demand for PFY has been moderate, while speculative demand was weakening. Downstream plants expect business to worsen in July but the operating rate still has support as weavers will hoard up inventory for the peak season even after orders diminish. However, weavers are still expected to worry about the uncertainty caused by environmental protection and the mounting cost because of continuously increasing dyeing fees.

Polyester filament yarn plants expect to face bigger selling pressures in July compared to June. Supply/demand fundamentals in July are supposed to be weaker than in June in anticipation of the growing supply but a weaker downstream demand. Inventory of PFY is low now. Demand is anticipated to be moderate in anticipation of a stable run rate. The sales ratio of PFY may improve periodically, and the price of PFY may be in correction.