the cost support from polyester feedstock is expected to be soft

Thirdly, the cost support from polyester feedstock is expected to be soft.

Operating rate of polyester stays at low level, while that of PTA is at 90% or above. As a consequence, PTA inventory may accumulate in Aug. In addition, 2,200kt/yr PTA capacity is planned to come on stream in Sept. Therefore, direct-spun PSF may hardly gain support from cost side.

As a whole, if end-user market does not improve largely, direct-spun PSF will drop to year’s low. It may not recover until the bearish factors in the market are consumed.