PET flake prices lack support in short run

The price spread between PET fiber chip and PET flakes once enlarged to nearly 900yuan/mt, returned somewhat after PET flake prices rose, but still above 600yuan/mt, which was a relatively high level.

The rise of recycled chemical fiber prices was mainly pushed by the uptrend of PET fiber chip and PET flakes. However, the procurement of downstream plants and traders was mainly for building stocks, and the feedstock has not consumed actually. In other word, the feedstock was just transferred to downstream plants or traders’ hands, as end-user market has not improved obviously.

In general, PET flake prices have been high currently, though there is certain price spread with PET fiber chip, and supply remains tight, the downstream recycled chemical fiber market is still unsmooth, and the increment is smaller than that of feedstock, so the cash flow is squeezed again. Therefore, PET flake prices lack support in short run, and the upward space is supposed to be limited.