PIY plants hoped to improve their processing fee by raising price amid losses

As for the cash flow, it was during negative territory previously in 2021 with excessive supply after some new units started operation since last year, which kept refreshing new low. Recently, the cash flow recovered after PIY price moved up while chip-spun PIY was still not profitable. Based on spot price, price of bright PET fiber chip was at 7,300yuan/mt, trading price of ordinary high-tenacity PIY 1000D was mostly pegged at 9,500yuan/mt, and the processing fee was at 2,200yuan/mt. Losses of PIY were near 300-400yuan/mt. According to the monthly average price, monthly average price of PIY was at 9,300yuan/mt by Oct 26 and that of bright PET fiber chip was at 7,850yuan/mt, 3-month by acceptance, with the processing fee at around 2,000yuan/mt. The Oct settlement price of bright fiber chip in Sinopec was at 7,850yuan/mt, 3-month by acceptance, and the processing fee of PIY was even lower at 1,500yuan/mt, with serious deficit. PIY plants that purchased fiber chip under contractual basis suffered more serious losses as the settlement price of PET fiber chip was high. Therefore, PIY plants hoped to improve their processing fee by raising price amid losses.