Recent market review of recycled PET feedstock

International oil prices move up significantly stimulated by various favorable news, and the increment has surpassed 20% till now compared with the pre-holiday level. Polyester feedstock and polyester product prices also rebound largely after the Chinese Lunar New Year holiday, and polyester plants adjust up prices several times within one day. SD PET fiber chip prices have risen from 5,400-5,500yuan/mt before the holiday to 6,200-6,300yuan/mt now and direct-spun PSF prices rise by 1,000yuan/mt to 7,800-8,000yuan/mt.

On recycled chemical fiber market, no matter the HC re-PSF or close virgin PSF, prices step up obviously.

For the feedstock market, the popcorn and flakes cleaning plants are still in the recovery of resumption. Due to higher PET fiber chip and recycled chemical fiber prices, suppliers are generally reluctant to sell, and market prices are relatively mixed. Price differences between sellers and buyers are large. Some suppliers offer hot washed blue and white flakes for HC re-PSF at 5,400yuan/mt, pre-tax delivered, and buyers’ indication is at 4,400-4,700yuan/mt. At the last weekend, hot washed blue and white flakes are traded at 5,500yuan/mt after-tax, while on Tuesday (Feb 23), offers have risen to 5,800yuan/mt, some even higher to 6,000yuan/mt. For 3A-grade white flakes, the mainstream trading prices are pegged at 6,500yuan/mt before the holiday, up to 7,200-7,300yuan/mt back from the holiday, and on Tuesday, prices have risen to 7,500yuan/mt. High-end and eco-friendly re-PET chip is generally offered at 8,000yuan/mt, also up about 600-700yuan/mt compared with the level before the holiday. For bottle bales, before the Spring Festival holiday, three-colored rough bottles are mainly offered at 3,200-3,300yuan/mt in East and Central China, and after the holiday, prices continue to rise, to be around 4,000-4,100yuan/mt. White bottle bale prices also climb up from 4,200-4,300yuan/mt to 4,500-4,800yuan/mt. The price still has upward space later. For popcorn, prices are mainly at 4,500-4,700yuan/mt before the holiday. A few large plants offer at 5,000-5,200yuan/mt back from the holiday, while the offers have risen to 5,400-5,500yuan/mt on Tuesday, some higher at 5,700yuan/mt.

Currently, PET flake plants restart production slowly, and feedstock supply is tight overall. In short, the supply and demand pattern is hard to change. For recycled chemical fiber plants, feedstock inventory is not high, and coupled with continual high level of virgin polyester fibers, they may reduce the purchasing volumes of PET fiber chip. Therefore, PET flake prices may remain firm in short. The higher offers on the market recently may turn to be the mainstream trading prices later.