HC virgin PSF will snatch the market shares of recycled one further

The epidemic has not finished, but PET bottle flake supply gets tighter, so HC re-PSF price has limited room to move down under high cost.

If HC virgin PSF price moves down 500yuan/mt further to 7,000-7,500yuan/mt, the recycled one will suffer losses, and HC virgin PSF will snatch the market shares of recycled one further.

At present, the epidemic is still in strict control, but PET bottle flake needs a long flow from manual collection to cleaning and processing. Therefore, PET bottle flake supply will be difficult to recover in the first half of 2020, which will also lower operating rate of HC re-PSF or make enterprises shift to produce chip-spun one. If so, re-PSF will lose its price edge. However, it is actually an opportunity for HC virgin PSF to expand market.