Virgin PSF price inched up for a short period of time after the Spring Festival while later kept falling from 9,180yuan/mt to 8,835yuan/mt, totaling a fall of 345yuan/mt. In April, the market still face big pressure. 

Supply 
After the Spring Festival, some plants that did not shut down during the holiday pressed by sluggish sales and falling prices carried out maintenance. Thus operating rate was within 85%. Yet with April approaching, some new and old units will gradually start. The operating rate is expected to reach over 90%. 

In end-March, Hengyi and Quandi will increase their virgin PSF production by 200mt/d. In early-mid Apr, Xiangsheng will also restart its 260kt/yr units, and in late April, Jiangsu Huahong will start its new 85kt/yr units. All these will greatly increase supply. 

Inventory 
As sales sustained sluggish, virgin PSF inventory kept rising. Now it prevails at 12-17days with some lower within one week and higher at one month, a high level never seen since the second half of 2017. 

In face of the pressure, virgin PSF plants are very likely to boost sales at the cost of lower cash flow, which now remains at a high level of 800yuan/mt.