How long can PET flake rebound last

International crude oil prices rebound quickly recently stimulated by the macro news and geopolitical tensions. PTA futures surge, following the polyester products.

SD PET fiber chip prices moved by 700yuan/mt from 6,500yuan/m to 7,200yuan/mt amid the good sentiment. For PET flakes, prices have been constantly decreasing since the early 2019, especially in early May, prices decreased quickly due to lower recycled chemical fiber and PET fiber chip prices, once down to 6,000yuan/mt, a two-year low level. The price spread between PET flake and PET fiber chip enlarged evidently. During the period, many plants cut production or suspended operation in slack season, and with the pessimistic anticipation towards the late market, plants were not active to purchase feedstock, mainly to control the inventory. Therefore, with the limited feedstock inventory, and stimulated by the sharp rise of PET fiber chip, PET flake prices moved up, and the supply tightness was more obvious.