Stocks of PFY and PSF has exceeded the high level after the Spring Festival and the peak in the Q4 2018 blended hand yarn

Observe from the demand side: 
Printing and dyeing plants saw insufficient orders. Price of dyestuff increased, while that of dyeing fee declined. Operating rate of fabric manufacturing plants and twisting units hit 6-year low in Zhejiang and Jiangsu.

Stocks of PFY and PSF has exceeded the high level after the Spring Festival and the peak in the Q4 2018.

Pressed by demand and cost, polyester plants accelerated to suspend or curtail production since mid-May, and the polymerization rate has below 90%, which may reduce further in Jun if such situation maintains.

Speculative demand may improve after end-users see new orders and absolutely low price appeared, which will be supportive to overall market. However, demand is anticipated to be hard to turn better when Jun is a traditional demand off-season and the demand is supposed to be plain with escalated Sino-US trade conflict. Weaker polyester cost and demand pose pressure on the stocks and cash flow of polyester plants; thus, price is likely to be weak for a period. Eyes are suggested to the supply/demand change of the whole industrial chain and the stocks change in fabric manufacturing plants.