Recycled polyester prices are now falling in China, in line with the decline of virgin polyester prices. Imports of foreign recycled fibers is also pressuring prices whereas PET bottle flakes are still lacking ahead of the peak season which will be triggered by hot temperatures of the coming months.
Prices of recycled polyester fibers have begun receding in China, in line with a lack of demand in the past weeks.
Re-PSF price has lost 50 yuan per metric ton or 0.6% in the last days whereas Re-POY price has even declined 200 yuan or 2.3%.
The fall of virgin polyester prices in the past days has triggered the decision to also lower recycled fiber prices in order to retain a price advantage.
The price gap is however increasingly narrowing, with demand for recycled fibers being therefore depressed.
In addition, large quantities of recycled polyester fibers are now imported from other countries, resulting in lower prices, especially in Guangdong.
Bottle flake prices are not yet falling in the meantime, as consumption of PET bottles has not yet reached its seasonal peak.
The current rise of temperatures in China will inevitably increase availability of bottle flakes and the raw material costs of recycled polyester producers should therefore decline.
This could help producers in further lowering their prices and in restoring their price advantage vs virgin polyester.
On the other hand, environmental inspections have continued in China, resulting in an overall fall of operating rates at recycled fiber plants.
Eventually, the ban on imports of foreign bottle flakes as of January 2018 has significantly reduced the market for recycled polyester fibers in China.
Source: Emergingtextiles
