Views:1 Author:Site Editor Publish Time: 2019-05-29 Origin:Site
The large downswing of polyester products dampened the recycled chemical fibers evidently. Moreover, affected by the unfavorable macro environment, recycled chemical fibers stepped into losses successively. Operating rate of re-PSF plants declined in May, and some plants still have plans to shut down for turnarounds later, so PET flake prices lack effective support. In recent two weeks, PET flake prices moved lower quickly.
For the price spread between PET flakes and PET fiber chip, it remains at low level. Price spread of hot washed blue and white flakes for HC re-PSF and semi-dull PET fiber chip only scores at 400yuan/mt. PET fiber chip prices have decreased by 1,500yuan/mt, while PET flake prices only lowered by 1,000yuan/mt. Meanwhile, the market mainly purchases cold washed flakes to produce, by now, offers for cold washed blue and white flakes are at 4,800yuan/mt in North China, 5,300yuan/mt in Zhejiang and Jiangsu, and 5,300-5,500yuan/mt in Guangdong, with a decrement of 1,100-1,300yuan/mt in general. Overall, with sluggish sales of recycled chemical fibers and low buying interests, price spread of PET flakes and PET fiber chip remains low, and is likely to expand. Moreover, with higher temperature later, supply tightness may ease somewhat, which is also a bearish factor for PET flake prices.
Viewed from polyester products, cash flow of PET fiber chip is close to the cost line, while the PTA-PX spread approaches nearly 1,000yuan/mt, and cash flow is around 400yuan/mt. If downstream market still sees no improvement, the prices are still likely to keep downward, especially that cash flow of direct-spun PSF is above 300yuan/mt, and that of HC PSF around 1,000yuan/mt, the downward risks exist. The virgin PSF and HC PSF are closely related to the re-PSF prices, and if the prices continue to fall down, the re-PSF market will be dampened further, and PET flake prices will tick down as well.
In general, in short term, PET flake still has a downward space of 300-500yuan/mt, and buyers are suggested to be cautious to purchase.