Post-holiday re-PSF market situation

Most recycled plants delay the restart time after the Spring Festival holiday affected by the limited workers, unrecovered logistics caused by the novel coronavirus and tight feedstock.

The restart time of close virgin PSF plants is delayed in general, as the migrant workers are hard to return work. Currently, product inventory in plants is relatively low, and some plants have not offered prices and delivered goods. Some plants plan to resume operation on Feb 15-20, while some plants have not decided the restart time.

HC re-PSF plants originally plan to resume work late after Feb 8. Product inventory in plants is mostly high, at 20-30 days in East Chin and South China. Inventory of some specifications is only low in Hebei and Shandong.

For late market, most market participants hold pessimistic mood. In spite of the support from tight PET flakes, downstream plants also delay the resumption caused by the coronavirus, and some may restart till end Feb or early Mar. On Feb 3, commodity market has slumped and PTA futures have hit the maximum fall. Recycled market is under great downward pressure, especially close virgin PSF. During the Spring Festival holiday, some virgin PSF plants continue to operate, and inventory is at yearly high level, mostly at 10-20 days, a few highly at around one month. HC PSF inventory has been low before the holiday, and prices have some support. HC re-PSF plants hold looking-on mood.