supply of PET flakes will enter the slack season soon

As the major purchaser of PET flakes, HC re-PSF plants have not seen improvement this year squeezed by domestic HC virgin PSF and imported HC re-PSF and affected by trade war. Plant inventory has been constantly high, higher obviously compared to the corresponding period of last year, while operating rate was lower. Even in the traditional buoyant season of Oct, some plants suspended operation to have turnarounds, showing the poor downstream market.

For close virgin PSF, direct-spun PSF prices have been at low level, and prices were flat or even lower than that of close virgin PSF. Therefore, sales were difficult and producers were dull to purchase feedstock.

In general, though supply of PET flakes will enter the slack season soon, and the reduction of supply may give some support to prices, but without the support from the downstream recycled chemical fiber market, prices may remain weak. In addition, the pressure from the virgin polyester market on recycled chemical fiber will continue. PET flake prices may be hard to increase in the rest time of 2019.