Polyester fiber is in abundance in China and prices of direct-spun polyester staple fiber (PSF) rose in mid July.The price rise is driven by cotton and polyester yarn instead of polyester feed stocks, taking the industry unprepared.

Boosted by cotton and viscose staple fiber prices, direct-spun PSF prices have surged up, partly because of massive scale demand from yarn mills, which have shifted to polyester staple fiber products under pressure from surging cotton and VSF prices. And partly because of polyester yarn mills who have revised offers boosted by excellent demand.

Direct-spun PSF plants were mostly free of inventories and some even could not completely cover orders. Downstream showed limited follow-up trends, so the market now enters a consumption period and the focus can be returned to polyester feed stocks.

In June viscose staple fiber prices moved parallel with auctioned cotton prices. Direct-spun PSF also followed up during end of the June and early July, completely dragged by polyester feed stocks.

Moreover accession in the massively stable polyester feed stocks, progress flow of direct-spun PSF widened to 400 yarn per meters, close to the high level year-to date.

Also blended yarn in north China was weak.