Though the prices of direct-spun PSF in China surged with improving sales post May Day holiday, sales ratio has dropped. As per SRTEPC reports PSF futures slumped from early to mid-May. Transactions by way of basis showed obvious advantages, pressuring the sales of direct-spun PSF plants. This led to a downturn in the prices of direct-spun PSF alongside the ups and downs of polyester feedstock and PSF futures during the period.

The modest interest shown by downstream spinners resulted in increase of inventory of direct spun PSF plants. It has increased to 4.3 days currently. The actual product inventory in the warehouses of direct-spun PSF plants has risen to high level at 21.3 days. To deal with this, many plants started to cut production. For example, Yizheng Chemical Fiber, Jinlun and Huvis (Sichuan) all arranged maintenance or production cut during May. By the end of May, the operating rate of direct-spun PSF plants moved down to about 93 per cent.

On the other hand, the sale of downstream blended polyester yarn has been smooth since April, encouraging spinners to shift production from pure polyester yarn and TC-type one to CVC-type one which contains less PSF than the former.