PET flakes prices tend to stabilize

Since late July, due to the continued weakening of international crude oil futures, the prices of polyester feedstock and virgin polyester product have been declining, which has significantly constrained the prices of recycled fiber and PET flakes. The price of semi-dull PET fiber chip has dropped by about 500yuan/mt in the past month, falling to around 6,600-6,700yuan/mt. Meanwhile, the price of hot washed blue and white flakes for HC re-PSF has decreased from around 6,250yuan/mt to 6,000-6,050yuan/mt, with the price difference narrowing from around 1,000yuan/mt to about 600yuan/mt, indicating a significant reduction. The price of cold washed blue and white flakes has seen a more pronounced decline. Previously, prices in the Jiangsu and Zhejiang market were high at 5,700-5,800yuan/mt pre-tax delivered. This week, the price is 5,300-5,400yuan/mt, with some lower at 5,200yuan/mt. The price has dropped by about 400yuan/mt.

Starting this week, oil prices have rebounded, leading to stabilization in the prices of polyester feedstock and products. The market's panic mentality has improved, and downstream sectors still have certain expectations for market demand. It is expected that the prices of PET flakes will remain stable in the short term.

According to recent market feedback over the past two weeks, the supply of bottle bales and PET flakes has significantly improved. Previously, due to continuous high temperatures, the bottle sources in the market were not rapidly and effectively recovered and transferred to cleaning and fiber factories. It is anticipated that the period of relatively ample supply will last for about a month. By then, as summer supplies are absorbed and temperatures drop, market supplies will decrease again. It is advised for plants to moderately build up raw material inventory and prepare stock reasonably.