Recycled PET flakes to remain firm in short

Recently, oil prices go weakening, and polyester feedstock prices have been constantly decreasing. PET fiber chip prices also fall down evidently, with semi-dull chips down from 6,700-6,800yuan/mt to 6,250-6,350yuan/mt, ex-works or short-distance delivered.

For PET flake market, prices of hot washed blue and white flakes in Zhejiang and Jiangsu are little altered, with the mainstream trading prices still at 5,000-5,200yuan/mt delivered, higher at 5,300yuan/mt. Market supply is not large, and orders for suppliers are moderate, with small selling pressure.

Compared with the PET fiber chip, the price spread remains at above 1,000yuan/mt. The decline of PET fiber chip prices has little impact on PET flake prices. For the major consumer, HC re-PSF plants, the prices of HC re-PSF are mainly at 6,400-6,500yuan/mt, and the price spread with PET flakes is about 1,100-1,500yuan/mt based on hot washed blue and white flakes. Currently, some re-PSF plants purchase cold washed blue and white flakes, with the prices at 4,200-4,300yuan/mt, then the actual profitability can improve. Besides, some plants directly purchase bottle bales and then process, so the profitability will be better.

In general, the peak season for soft drinks and bottled water consumption will end soon, and then the recycling volumes of bottles will reduce gradually. The downward space for rough bottles and bottle bales is supposed to be limited. Though HC re-PSF market demand is sluggish overall, on concern about supply pattern and support from PET fiber chip, PET flake prices may remain firm in short.