• Key YTD moves: Polyester +14%; HW DWP +52%; China-origin DWP +43%; medium-grade VSF +26% and high-end VSF +36%.
  • Further pressure on VSF prices (high-end holding up better), down 8% in three weeks: The VSF operating rate has also weakened from 83% to 74%, impacted this past week by maintenance in Xinjiang. Sixth week in a row of rising VSF inventory days – now at 20.5 days. The VSF/DWP spread is down 6% w/w and now only up 9% YTD. In the ST, VSF prices could come under further pressure but there are concerns around recent snow in Xinjiang, causing lower cotton production as well as orders shifting from India due to the resurgence of COVID-19.  
  • Imported DWP prices tick up slightly, while domestic prices remain stable: In the domestic market, Hunan Juntai has switched back to DWP. Some imported hardwood offers were concluded at USD 1,120/t vs. closing price of USD 1,106/t. Although increasing, downside risk still appears in check due to tight DWP supply.

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