Recycled PET flake prices move lower, while popcorn prices firm

Recently, crude oil prices decline significantly. Since early Jun, oil prices have moved lower from high level, and the fluctuation is over $30/bbl. PET fiber chip prices have been constantly decreasing with the collapse of feedstock costs and sluggish downstream demand, once with a decrement of 2,000yuan/mt.

From the prospective of re-PET feedstock, prices tick up since May driven by rising oil and virgin polyester prices. Prices of recycled PET flakes for re-PSF, like hot washed blue and white flakes for HC re-PSF and cold washed flakes, climb up by 300-500yuan/mt overall. 3A-grade white flake prices rise by 200-300yuan/mt. Popcorn prices tick up by above 800yuan/mt due to higher prices of polyester drawing waste. In mid-Jun, oil prices slump, as well as virgin polyester prices, so recycled PET flake prices go downward, to the level in early May by now. for popcorn, prices are relatively firm despite of a lower price. For the trend in the first half year of 2022, popcorn prices are basically 200-400yuan/mt lower than hot washed blue and white flake prices. Nevertheless, since late Jun, the popcorn prices are higher than hot washed blue and white flakes, mainly because of the lower volumes of polyester drawing waste under the low operating rate of polyester plants and downstream twisting plants.

In short, recycling volumes of bottles may increase somewhat in summer, but under the impact of epidemic, the increase is quite small. Meanwhile, recycled chemical fiber sales are slow, so the demand for PET flakes reduces. In Aug, PET flake prices may remain in weak consolidation. Popcorn prices may move downward as polyester drawing waste prices may decline under the cost pressure.