Bearish demand drags the rise of PSF price and expanding losses affect supply and demand pattern

Bearish demand drags the rise of PSF price and expanding losses affect supply and demand pattern.

Currently, PX, PTA and MEG all suffer great losses, and PTA-PX spread even turned negative on Mar 8 for the first time in the record. Polyester products like PSF, POY, FDY and PET fiber chip are all hit. It is resulted from sluggish downstream demand essentially. After Spring Festival holiday, textile and apparel industry saw soft demand. Firstly, amid high inflation, the demand from outside China declined. Secondly, the mills in Southeast Asia resumed production, and some orders flowed there. In addition, the slump of polyester feedstock diminished the speculative demand before Russia-Ukraine conflict. As a result, downstream orders were not prosperous after Spring Festival holiday, and thereby, polyester feedstock and PSF prices were dragged down to relatively low level amid strong crude oil