Major events of China recycled industry in 2019
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Major events of China recycled industry in 2019

Views: 2     Author: Site Editor     Publish Time: 2020-01-09      Origin: Site

JanPrice spread between virgin PSF and recycled PSF remained low, and recycled plants set off for Chinese Lunar New Year earlier.
FebPlants delayed the operation resumption after the holiday, and there was no a good start. Polyester market presented sluggishness, and recycled plants operated unsmoothly.
MarHC virgin PSF prices dipped below the HC re-PSF, and the imported HC re-PSF at low prices also impacted the China HC re-PSF market. In addition, Southeast Asia also started to implement policies on plastics ban and limitation, and international big brands have plan on recycling market.
AprRecycled market performed mildly, and consumption weakened. HC re-PSF inventory was piling up, and most plants planned to suspend operation or cut production in May.
MayThe USTR (US Trade Representative) has issued a press release on May 8 indicating that it would increase tariffs on $200 Billion of Chinese imports from 10% to 25% on May 10, 2019. Plus the weak downstream demand, the recycled market stepped downward overall. Besides, with the depreciation on both feedstock and product inventory, plants purchased cautiously. 
JunPolyester market witnessed a round of quick rise driven by higher PX and good sales. Meanwhile, for recycled chemical fibers, inventory was depleted, while procurement of feedstock was difficult.
JulThe market returned to the fundamental, and dragged down by the sluggish downstream demand, recycled prices stepped lower again and plants cut production or suspended operation.
AugOn August 28, Trump said he would be raising planned tariffs on $300 billion in Chinese goods from 10% to 15%. The Office of the U.S. Trade Representative also said existing tariffs on another $250 billion in Chinese imports would go from 25% to 30% on Oct. 1 after receiving feedback from the public. Pessimistic mood covered on the market, and more recycled plants cut production. Prices of virgin PSF were approaching the level of close virgin PSF, or even be lower. Downstream buyers turned to purchase virgin PSF.
SepPolyester product prices moved up in general after an attack on Saudi Arabian oil facilities around mid-Sep shut over 5% of global supply, and recycled chemical fiber sales improved. 2019 Yarn Expo Autumn has been held in Shanghai on Sep 25-27, and recycling and degradability are still the future development trend.
OctHC re-PSF sales were unsmooth, and plants cut production or suspended operation intensively.
NovPolyester product prices kept downward, and recycled market shrank.
DecMEG spot prices moved up significantly buoyed by healthy fundamentals and low inventory level. Virgin PSF prices followed up quickly, giving support to the uptrend of PET flakes. Recycled chemical fiber prices also shored up.