[Recycled PET Daily Review] Supply and Demand Factors Compete, Recycled PET Market Remains Temporarily Stable

1. Today’s Summary

1. Today, the mainstream quotation for imitation Dahua on-machine pure white clear flakes in Jiangyin is RMB 4,700/ton, and the mainstream quotation for 3D-grade cold-water blue-white clear flakes is RMB 4,200/ton.

The price of raw materials showed a mixed trend, with PTA spot prices falling by 35 yuan/ton to 6,550 yuan/ton, while ethylene glycol prices increased by 24 yuan/ton to 4,762 yuan/ton. The equivalent polymerization cost is 7,195.52 yuan/ton, a decrease of 21.89 yuan/ton compared to the previous trading day.

2. Spot Overview

Prices of recycled PET bottle flakes across domestic regions remained unchanged across the board. In Shandong, 3A-grade machine-feed pure white flakes were priced at RMB 4,500/mt; in Zhejiang, 3A-grade cold-washed blue-and-white flakes at RMB 4,200/mt; in Jiangsu, imitation virgin-grade machine-feed pure white flakes at RMB 4,700/mt; in Hebei and Guangdong, 3A-grade cold-washed blue-and-white flakes were RMB 4,000/mt and RMB 4,200/mt respectively; and in Fujian, 3A-grade hot-washed blue-and-white flakes were RMB 4,600/mt. Downstream recycled chemical fiber product prices also remained stable, with Jiangsu 1.4D high-strength low-elongation imitation virgin-grade fiber at RMB 5,950/mt and Zhejiang 3D 7D siliconized fiber at RMB 6,100/mt. Taking the Jiangsu market as a benchmark, local imitation virgin-grade machine-feed pure white flakes held steady at RMB 4,700/mt, with no price fluctuations for the time being. End-user demand remains sluggish, shipments from recycled chemical fiber plants are facing resistance, and raw material procurement is being carried out cautiously on a need-only basis. Meanwhile, prices of virgin polyester chips are trending downward, and the price spread between virgin and recycled materials continues to narrow, weighing on sentiment in the recycled materials market. However, washing plants are operating with weak profits and relatively low run rates, while traders are clearly reluctant to sell at low prices. Overall market trading activity remains average.

3. Market Forecast

Downstream end-user demand orders are insufficient, and recycled chemical fiber plants are facing sluggish shipments, leading to a strong intention to bid down raw material prices. On the upstream side, the increase in recycled bottle supply remains limited, baling stations are holding firm on prices, and washing plants are finding it difficult to procure material while insisting on not selling at low prices. With supply and demand locked in a stalemate and no clear unilateral driving force for the time being, the domestic recycled PET bottle flake market is expected to remain range-bound with stable prices in the short term.

Editor: Abby

(Source: Longzhong)