Polyester fiber prices have further plunged in the last seven days in China, over a weakness in demand. The full textile chain is actually anticipating a new decline of prices in the coming period, therefore limiting its orders as far as possible.
Polyester staple fiber prices have continued sharply falling in the last seven days in China, with benchmark 1.4D now reaching 7,150 yuan per metric ton from 8,520 yuan four weeks ago.
PSF prices have therefore lost 1,330 yuan in the meantime or 15.6%.
Even at these significantly lower levels, demand remains very weak over anticipations of lower prices in the coming weeks.
The full textile chain is actually frozen by the downward trend.
Confronted with a fall of their margins, polyester fiber producers have begun lowering their operating rates down to 87% from their historical high level above 90%.
Production is still very strong amid falling material costs with PTA and MEG having both sharply declined in the last weeks.
Although their material prices are falling, PTA producers are also lowering their operating rates.
Polyester chain prices are now expected to stabilize at these lower levels.
With the dragon boat festival ahead, prices could further drop, however.