Virgin PSF prices rise fast, how about close virgin PSF prices?

Virgin PSF market has experienced several rounds of intensive rise on prices during the Chinese Lunar New Year holiday. Currently, 1.4D direct-spun PSF has been offered at 7,100-7,400yuan/mt. Through communicating with the close virgin PSF plants, most of the producers have not offered the prices. On one hand, most plants have not resumed operation from the holiday, and plants will restart successively from Feb 19 to Feb 23, and a few may be after Lantern Festival (Feb 26). Product inventory is low and some plants even have no inventory. On the other hand, producers have no idea about the prices.

Solid re-PSF plants mainly start the holiday in end Jan and early Feb, some around Feb 9, and during the period, despite of higher virgin PSF prices, close virgin PSF offers mainly maintain the previous prices with the coming holiday.

Compared with the prices on Feb 8, PET fiber chip prices rise by 300yuan/mt and virgin PSF prices rise by 430yuan/mt on Feb 18. Currently, PET flake market is still amid the holiday mood, and trading activities are limited. A few HC re-PSF plants in Shandong procure cold washed flakes at 4,300yuan/mt, up by 300yuan/mt.

Currently, Hebei Jinyi offers 1.4D HTLS close virgin PSF at 6,700yuan/mt, and Wujiang Feiyang offers 1.5D close virgin PSF at 6,000yuan/mt.

For late market, virgin PSF market is supposed to be bullish further and prices may rise further. With the larger price spread with close virgin PSF, close virgin PSF prices may follow up. For HC re-PSF market, offers rise by 200yuan/mt in Guangdong and Zhejiang. In Guangdong, 7-15D siliconized HC re-PSF is offered at 6,800-7,100yuan/mt, pre-tax ex-works. In Zhejiang, offers are mainly at 7,000-7,200yuan/mt in Cixi, 7,500-7,600yuan/mt in Hangzhou, after-tax ex-works. Most plants resume operation successively during Feb 19-23. Prices are expected to rise further.