Weekly Report: PSF (Nov.7-Nov,11)

This week, PSF price followed the previously declining tendency due to the weak tendency of downstream market. Sinopec adjusted their quotations of November contracts twice with one week. Among all the products, 1.4D semi-dull PSF is quoted 11500 Yuan/ton, which greatly lost 1500 Yuan/ton compared with previous quotations. Judged from the East China market, 1.4D direct spinning PSF dropped to 11000-11100 Yuan/ton, decreased 700 Yuan/ton compared with last weekend, down 5.93%. As for the South China market, quotations also went down. At present, 1.4D PSF is quoted 11100-11200 Yuan/ton by cash and with delivery, down 700 Yuan/ton and the decreased rate was 5.88%.

In Upstream feedstocks market, international crude oil market showed increasing tendency. Ended by the close on 10^th, December futures of New York oil closed at 97.78 dollars, recorded as the highest close price in recent three months. PTA futures went weak and down this week. Suppliers reduced the quotations to 8100 Yuan/ton in domestic market, 400 Yuan less than the price in last weekend. Korean cargo adjusted to 1050 dollars in overseas market. In Zhengzhou Commodity Exchange, contract 1201 dramatically decreased 4.73% by the close on 11^th.

Judged from the present PSF market, as the feedstocks price is in fluctuation and PTA futures broke 8000 Yuan, the supportive effect for the PSF market turned weak. Besides, the weak tendency in the downstream market also restricted the cover intention of downstream yarn manufacturers. Therefore, PSF market is predicted to be weak and decline in a short term.