- Key YTD moves: Polyester +15%; HW DWP +44%; China-origin DWP +36%; medium-grade VSF +11% and high-end VSF +14%. In contrast, Lyocell is only up 1%.
- VSF prices continue to stabilize, with new offers partially higher: The VSF operating rate dropped to 68%. VSF inventory days declined to 24 days. The VSF/DWP spread weakened by 2% w/w and is down 10% YTD. The theoretical VSF loss for Chinese producers stable but still in the red at -RMB 702/t. Based on current sentiment (risk aversion from downstream segment), it is hard to see VSF prices improve.
- Imported DWP prices stable, while domestic prices play more catch-up: Domestic operating rates improved on the back of a Shandong-based plant resuming DWP production. Hunan Juntai has not switched DWP production yet, thus tightening supply somewhat.
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