• Key YTD moves: Polyester +15%; HW DWP +44%; China-origin DWP +42%; medium-grade VSF +11% and high-end VSF +13%. In contrast, Lyocell is only up 2%.
  • VSF prices stable this week: The VSF operating rate was stable at 70%. VSF inventory days improved slightly to 23 days. The VSF/DWP spread improved by 1.6% w/w but is down 8% YTD. The theoretical VSF loss for Chinese producers improved slightly but remain in the red at -RMB 694/t. There appears to be no selling pressure in the ST and producers have been testing the waters with higher offers. VSF stocks may tick up in next week or so due to the Dragon Board Festival this week.
  • Domestic DWP prices plat catch-up to imports: Imported DWP prices were stable this past week. Chinese pulp mills continued with low operating rates, with small output from Shandong. AustroCel Hallein pulp mill is prepping for maintenance, while Jari is likely to come back from maintenance.    

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