Operating rate in major recycled production bases reduces except South China

Currently, operating rate of re-PSF plants is only slightly above 50%. Some plants still maintain production, but affected by the tight feedstock supply, high product inventory, restrained transportation and epidemic-related control management measures on downstream plants. Based on the epidemic situation in East China, more plants may cut production or suspend operation in end Apr and early May.

Plants in Jiangsu and Zhejiang are impacted much by the epidemic in Shanghai, especially HC re-PSF plants, operating rate reduces quickly. Most big plants in North Jiangsu, Anhui and Zhejiang curtail production or suspend operation. The situation is similar in Shandong. The plants that maintain production also face high product inventory. The operation in South China (Fujian and Guangdong) is relatively stable.

In Nantong of Jiangsu Province, the epidemic control management measures may continue. Local downstream plants and traders have very low feedstock inventory. If the logistics recover, intensive replenishment may be anticipated, but it may not last long. On concern about the high product inventory and tight feedstock inventory in East China during Apr and May, plants may be sold under negotiation