The increase of 2000yuan/mt for PSF May contracts before and after Spring Festival holiday has been cut by over 50 per cent. As per CCF report the spot direct-spun PSF price was also dragged down by selloff of spot-futures traders, but it moved down more slowly and has been cut by about 40 per cent of previous increase.　

The active transactions were seen in on-call trades of spot-futures traders. Sanfangxiang sources were mainly traded at 7,000-7,300yuan/mt by on-call trades. The basis also strengthened from minus 450yuan/mt~minus 400yuan/mt to minus 300yuan/mt. In addition, the stocks of spot-futures traders at hand have declined to about 70kt after underselling.

Some spot-futures traders were also reluctant sellers, and some even purchased further at current low price. They were optimistic to the return of basis, and had confidence to later increase in factory warehouses of traders and direct-spun PSF plants.

Currently direct-spun PSF plants and traditional traders were waiting spot-futures traders to sell out and futures market to stabilize after large volatility. The normal adjustment also needs more time to restore.