3A-grade white flake prices trend weak

3A-grade white flakes prices have also registered notable declines recently, yet their downward momentum has been far milder compared with virgin PET fiber chip. The relative price resilience is mainly underpinned by firm bottle bale costs.

Crude oil prices corrected rapidly following the conclusion of the US-Iran agreement, triggering a sharp collapse in polyester raw material costs and driving significant declines in PET bottle chip and PET fiber chip prices. In early trading on Jun 30, mainstream offers for semi-dull and bright PET fiber chip stood at 6,680-6,800yuan/mt and 6,700-6,900yuan/mt respectively, with prices negotiable for actual transactions. 3A-grade white flakes were mainly traded at 6,400-6,550yuan/mt, after-tax delivered. The price spread between PET fiber chip and 3A-grade white flakes has narrowed sharply, from around 1,500yuan/mt in late April to roughly 600yuan/mt in early June, now to 200-300yuan/mt.

In terms of price trends, 3A-grade white flakes prices have also registered notable declines recently, yet their downward momentum has been far milder compared with virgin PET fiber chip. The relative price resilience is mainly underpinned by firm bottle bale costs. Over the past month, persistent rainfall across northern and southern China has constrained overall feedstock recycling volumes. During the current price slump, purchasing prices for mixed-color bottle bales have only dipped by 50-100yuan/mt, while some manufacturers have kept their purchasing prices unchanged to secure stable raw material supply.

In the short term, virgin polyester products still face downward price pressure, and 3A-grade white flake prices will also be restrained with a mild weak trend. Nevertheless, sustained support from raw material costs remains solid, limiting the scope of further overall price declines in the near term.