Price decrease may drag down market atmosphere but may be the forced method to break the deadlock

How will polyester market fare in later period? The reaction of end-users is crucial. You can get more information about the downstream market from the Operation report of fabric mills in Zhejiang and Jiangsu 

It is learned that some end-users need to restock around mid-Jul, and whether it will be strong enough to push up overall market is the focus of polyester plants. Cutting price may be the best stimulus.

The market performance from late-May to Jun was a bottom-fishing lured by low price to a large extent as downstream players did not see better business during this period. By now, it is reflected that downstream market is still weak. Price of polyester products has increased a lot, so moderate price reduction may provide purchasing space for downstream buyers.

PFY plants have enlarged discounts today, with decrement for PFY mainly around 100-300yuan/mt and even higher around 400-500yuan/mt. Price decrease may drag down market atmosphere, but may be the forced method to break the deadlock. 

If price moves down and end-users restock, sales ratio of PFY is likely to improve in late-Jul, which may play an active role in stabilizing market mindset. But how much will price decline further and how long will it last still need further observation.