Recycled PET market declines with sharp fall of polyester feedstock

After the previous large rise, oil and polyester feedstock prices continue to fall recently, and virgin polyester market sales are scarce. For recycled market, prices also experience obvious decrease. HTLS close virgin PSF prices have declined from 7,000yuan/mt to 6,700-6,800yuan/mt, and HC re-PSF offers in Zhejiang and Jiangsu also decrease from 8,000yuan/mt to 7,600-7,800yuan/mt, some lower to 7,400yuan/mt.

In terms of recycled PET flakes, cold washed flakes have risen to 5,000-5,200yuan/mt in Zhejiang and Jiangsu previously, while the mainstream offers decline to 4,500-4,700yuan/mt on Mar 10, down about 500yuan/mt. For bottle bales, three-colored rough bottle bales decline about 300-400yuan/mt to 4,200-4,300yuan/mt. Previously, hot washed blue and white flakes were offered as high as 6,000-6,200yuan/mt, but recently, the prices move lower to 4,900-5,000yuan/mt, and may decline further. Market prices are mixed overall.

AAA-grade white flake prices are relatively firm, and trading prices move up slowly after the Chinese Lunar New Year holiday. Before the holiday, prices were about 6,500-7,000yuan/mt, rising to 7,300-7,400yuan/mt after the holiday. Some producers offered highly at 8,000-8,200yuan/mt. High-end and eco-friendly re-PET chip prices also climb up, from 7,500yuan/mt to 8,500yuan/mt. Due to higher AAA-grade white flakes, the cash flow is negative recently, so prices are expected to rise further. Currently, the mainstream offers are pegged at 8,600-8,800yuan/mt.

In general, buyers have replenished much feedstock during the previous decline period, and the demand for bottle bales and flakes is weak currently, giving little support to prices. Besides, with lower recycled chemical fiber prices, profits of recycled chemical fiber are squeezed, and buyers may lower the purchase prices of flakes, but the downward space may be not large. Pay attention to the virgin polyester price change.