The operating rate of direct-spun PSF plants in China is expected to plummet by around 20 per cent this week, falling below 70 per cent. This significant decline follows production cuts and suspensions at polyester yarn mills in key provinces like Fujian, Jiangsu, Zhejiang, and Hebei.

Furthermore, reduced operations at sewing thread companies in Hubei have exacerbated the situation, pushing polyester yarn operating rates to their lowest point this year.

Production estimates in China have been slashed by approximately 2.6 million tons. While PSF futures prices have declined, PSF plants are not facing major inventory issues, and prices remain relatively stable.

However, sluggish downstream demand and the uncertainty surrounding the upcoming Spring Festival holiday have prompted a cautious approach among market participants.