Substitution of virgin PSF to re-PSF obvious upon narrowing price gap

Orders of virgin PSF and re-PSF were placed in advance due to the decline of VAT rate in Apr and were concentrated on Mar. Later on, as end-user demand turned soft and the orders were overdrawn, PSF price stepped downward and then the decrease quickened as China-US trade dispute escalated. From the chart below, it can be seen that virgin PSF price slumped, followed by re-PSF.

With similar characteristics, virgin PSF and re-PSF can well substitute each other. Restrained by environmental protection and rising cost of raw materials, re-PSF is highly burdened. In addition, the sizes of re-PSF plants are varied with different product quality and large gap between the high and low prices.