With favorable news on China-US trade war in early December, sales of polyester yarn turned better, promoting the inventory to decline from 14 days to 7 days. Some polyester yarn mills are even short of supply. Accordingly, recycled polyester yarn mills are also affected. As the relevance between virgin PSF and recycled one gets closer, recycled polyester yarn mills pay more attention to virgin PSF and polyester yarn price trend.

With the fourth quarter coming to an end, stable price is favorable for downstream to consume stockpiles, alleviating the weakness on market. Differences exist among spinners in North China and in South China. In South China, polyester yarn is sold quickly while in North China, polyester yarn mills are burdened with high inventory yet polyester yarn made of close virgin PSF performs well.

Currently, downstream demand stays bearish despite slight improvement. Market players still hold cautious attitude to the demand recovery before and after Spring Festival. If downstream demand does not restor e actually, sales of polyester yarn will face large pressure and the favorable factors brought by eased China-US trade war will not last long. As things standing, polyester yarn market seems stable on the whole in the fourth quarter. Most spinners sell actively to lower inventory, and they generally keep cautious to the market outlook in the first quarter of 2019. In terms of restocking and holiday plans, polyester yarn market will stay bearish in Q1 2019.