[Daily Review of Recycled PET] Strong Cost Support, Market Stalemate and Steady Operation

1. Today’s Summary

Today, the domestic recycled PET bottle flake market remained largely stagnant and stable, with prices for most regions and specifications unchanged. Only some areas in Guangdong saw slight adjustments, while overall market fluctuations were limited.

2. The supply of upstream raw bottles remains tight, and the price of bottle briquettes is holding firm. Costs at washing plants are well supported, leaving limited room for companies to offer price concessions when shipping goods.

The price of virgin polyester has weakened and fallen, creating a bearish drag on the recycled market. However, the demand side is characterized by low inventory and on-demand purchasing, with no significant stockpiling or noticeable selling pressure.

4. Regional markets are diverging: East China, North China and Shandong are trading steadily, while Guangdong is relatively weak; overall, the market is engaged in a tug-of-war between bulls and bears and is consolidating within a narrow range.

II. Spot Overview

The domestic recycled PET bottle flake market remained stable today, with mainstream specifications' prices holding steady across the board. In Jiangsu, imitation Dahua hot water white flakes were priced at 4700-4800 RMB/ton, Zhejiang Sanwei hot water blue-white flakes at 4400-4500 RMB/ton, and Hebei and Shandong cold water blue-white flakes maintained previous price levels with no significant fluctuations. Only the Guangdong market saw a slight downward adjustment, with chemical fiber grade cold water blue-white flakes dropping slightly by 25 RMB/ton, making it the only region showing weakness today.

Overall trading in the market was subdued. Declines in virgin polyester prices weighed on market sentiment, and sales of high-end materials were relatively slow. However, tight supply of upstream recycled bottle flakes provided firm cost support at the lower end, limiting the downside for prices. Downstream end-use demand remained weak in the off-season, with raw material inventories kept at low levels and purchases made on an as-needed basis. Most actual transactions were negotiated according to immediate demand and material quality, and overall trading volume was difficult to expand.

3. Regional Market Overview

Jiangsu MarketThe market is operating steadily, with prices for imitation Dahua chilled blue-and-white flakes remaining unchanged. Weakness in virgin material has reinforced a wait-and-see sentiment in the market, but cost support remains solid. Prices for standard bottle flakes are stable, with only the sales pace of high-end cargo slowing slightly.

Shandong MarketThe market is in a stalemate, with prices of three-dimensional cold water blue and white sheets remaining stable. The price drop of virgin polyester is putting pressure on market sentiment, leading to cautious operations among industry participants, resulting in overall average trading activity.

Guangdong marketRegional prices weakened and adjusted. Affected by the decline in virgin material prices, bearish sentiment in the market intensified. High-priced supplies saw slight concessions, and local prices edged down slightly, making this the main weak area in the market today.

4. Price Forecasting

The short-term recycled PET market continues.Stable stalemate, narrow-range fluctuationsPattern. The cost side of bottle-grade recycled PET sources is tight and prices are firm, providing solid bottom support for bottle flakes, limiting deep declines. However, the weak performance of virgin polyester continues to suppress market sentiment, coupled with the lack of strength in terminal demand during the off-season and tepid follow-up from just-in-time needs, resulting in a lack of upward driving forces in the market. Overall, the balance of bullish and bearish forces is relatively even, and it is expected that the recycled PET market will operate steadily in the short term, with localized small-scale differentiation.