3A-grade white bottle bales to get certain support from tight supply

3A-grade white flake prices have been constantly decreasing since Jun with sluggish market demand of high-end and eco-friendly re-PFY and re-PET chip, and by mid-Sep, the prices have reduced by 800-900yuan/mt from previous high level. Cleaning plants adjust lower the purchase prices of bottle bales by 1,000yuan/mt in Aug, while prices stay flat mostly in Sep with tight supply.

For bottle bales, rough bottle bales prices rise obviously recently, and the mainstream offers are at 4,200-4,500yuan/mt, pre-tax delivered, and some lower prices of 3A-grade white bottle bales also tick up, to be 4,700yuan/mt in East China and Central China, pre-tax delivered. Prices have no big differences, influencing the initiative in bottle selection. But with the lower temperature and multiple outbreaks of the epidemic, bottle supply tends to be tighter, and 3A-grade white bottle bale prices may get certain support, and are supposed to be easy to rise but hard to slip.

Looking from the price spread between 3A-grade white flakes and hot washed blue and white flakes, the price trends are basically the same overall, but recently, hot washed blue and white flakes prices rebound apparently to about 6,050yuan/mt by mid-Sep, while 3A-grade white flakes are mainly steady, only some lower prices increase. Therefore, the price spread keeps narrowing, which has narrowed from 1,800-1,900yuan/mt in early 2022 to about 700yuan/mt recently. Profit margin of 3A-grade white flakes has been compressed largely, and some plants have reflected running at a loss.

With lower temperature and difficulty in recycling, bottle bale prices are supposed to get certain support, and for 3A-grade white flakes, prices have been at a low level and may be in consolidation despite of weak demand.