Recycled products and development trend in Yarn Expo Autumn 2023

Yarn Expo Autumn 2023 is held in Shanghai during Aug 28 and Aug 30. The Yarn Expo has decent popularity, although it is slightly less popular than the Yarn Export held in spring in the first half of the year. The highest level of popularity is observed in 8.2 Hall.

1. Market sentiment

Ningbo Dafa and Guangdong Tok Zin raised the HC re-PSF offers by 100yuan/mt on Monday, and then part of plants in Jiangsu raised the HC re-PSF offers by 100yuan/mt and solid re-PSF offers by 50yuan/mt on Tuesday. The price increase this year is mainly pushed by higher feedstock market and sales are divergent. Sales are ordinary in Zhejiang and Jiangsu, and producers show concerns over the feedstock supply and demand in buoyant season later.

1) Market participants worry about the market in buoyant season. Recently, HC re-PSF sales are ordinary, and price increase is sporadic. Producers mainly stand on the sidelines. Part of HC virgin PSF plants lacks advantages, and is hard to compete. A few new production lines are delayed.

2) Boheng specializes in differentiated recycled PSF. Currently, there are 114 colors in their color card, and many of these colors are quite dreamy, especially appealing to niche differentiated customers. The necessity of OBP (Ocean bound Plastic) becomes more prominent with Japan's release of nuclear wastewater, as the urgent need to save plastic in nearby seas becomes apparent. It is reported that there are only three domestic manufacturers of recycled fibers with OBP certification: Boheng, Zhongyuan, and Cyclone.

Ocean Bound Plastics, abbreviated as OBP, refers to improperly managed plastic waste that is abandoned in the environment, where it can be transported to the ocean through rain, wind, tides, rivers, and floods. Plastic waste in landfills or managed waste facilities is not considered OBP, but plastic waste in uncontrolled informal landfills within 50 kilometers of the coastline is considered OBP. The purpose of OBP is to protect the ocean from plastic pollution originating from land-based activities, rather than recovering plastic from the ocean through fishing or collection efforts.

3) Zhejiang Jiaren continues to expand capacity on chemical recycling, and R-DMT is launched this year.

4) The production process under chemical recycling of Cyclone is below. According to Cyclone, the costs of chemical recycling are 3,000-5,000yuan/mt higher than that of physical recycling.

5) International brands continue to make progress in recycling, and factories are confident in fulfilling their commitments to these brands. However, progress in recycling among domestic end brands in China has been slow.

2. Changes of recycled polyester plants participating the expo

In terms of participation from recycled enterprises, the top positions for recycled PFY and colored re-PSF plants have remained relatively stable. This year, Suzhou Emon and Youxi Huayang have been added as new participants. There are relatively fewer participants in the field of hollow recycled PSF, with only Oceantex Fiber and Jinfuchun present for the autumn expo. Previously regular attendees such as Hebei Jinyi and Guangdong Qiusheng are not exhibiting this time. Overall, there is a good level of enthusiasm among recycled enterprises for participating in the event.

3. New product/interesting product/related new points on the Expo

1) Icelandic eider down. This product has been seen on 2021 Yarn Expo. The annual output was said to be only 1,000-2,000kgs and one piece of quilt was valued more than RMB 300,000. This year, Samsung sets a booth and the Icelandic eider down is 3 million yuan per ton. This year, exports drop affected by the economy in EU and U.S., but sales to Chinese domestic market increase, so the operating revenue still rises. Moreover, it is the official supplier of 19th Asian Games Hangzhou 2022.

2) In 2021 Yarn Expo, major brands were also emphasizing the concept of environmental protection in the accessories, such as zippers and ribbons. However, the reality was that the focus was still on exports, and the domestic market has not caught up yet. The proportion of recycled zippers increased from 2 percentage points to 5 percentage points, which could be considered as the initial stage, but the development was fast.

In this yarn expo, the proportion of recycled zippers has increased to 10-20% in some plants. Some plants reflect that the orders still depend on overseas markets.

3) The rise in the popularity of traditional Chinese style (Guofeng). This year, during wedding celebrations, many girls chose to wear traditional Hanfu dresses, such as the "Horse Face Skirt," as their engagement or toasting attire. The yarn expo also witnessed guests trying on Hanfu and exploring related fabrics. The younger generation's love for national culture and trends has led to an increase in the supply of products related to traditional Chinese style.

4. Future development trend

The theme of sustainability and environmental protection remains unchanged.