Views:3 Author:Site Editor Publish Time: 2019-06-24 Origin:Site
Consumption of virgin PSF and close virgin PSF currently overlapped in Jiangsu, Zhejiang and Hebei where the competition between these two exists. However, the most important factor promoting the substitution is price spread. According to virgin PSF plants, many close virgin PSF plants with high quality product came to enquire prices in end-May and placed large orders. Price spread of virgin and close virgin PSF remains low starting 2019 and by early Jun, it sustained within 410-490yuan/mt, which accelerates the snatch of virgin PSF market to close virgin one.
Jiangsu and Zhejiang, especially Jiangyin, are major producers of PSF and meanwhile locate many downstream plants. The usage of virgin PSF and re-PSF here fluctuates largely due to the product structure. If the price spread is below 400yuan/mt, downstream plants will prefer virgin PSF. So when price fluctuates fiercely, the usage of virgin PSF will improve rapidly.
From Apr, both of virgin PSF and re-PSF were dragged down rapidly by soft-end-user demand and decrease of polyester feedstock and the market stayed in negative territory. During this period, virgin PSF price even hit low at 7000yuan/mt ex-works, with 6800yuan/mt or lower for less quality ones.