The market for recycled PET bottle flakes rose in July and then fluctuated sideways. The overall trading pace of the market was not fast. Industry players tend to operate flexibly according to their own conditions. In terms of supply and demand, It is the main influencing factor on the price of recycled PET bottle flakes.
Rainy weather occurs frequently, and the growth rate of raw materials is slow
There are many high-temperature and hot weather in summer. The consumption of soft drinks has increased, and the recyclable amount of raw material bottles is relatively sufficient. July has completely entered summer, which is the peak season for wool recycling. In the first half of the month, the recycled bottle flakes market rose within a narrow range and then moved sideways. Cleaning plants were more motivated to produce raw materials and purchased raw materials at stable prices. Starting from the middle of the month, rainfall began to occur in many places in the north. Near the end of the month, due to the influence of Typhoon “Fireworks”, precipitation became more frequent. The recycling pace of raw bottles slowed down, and the growth rate of raw material shipments was lower than expected. The overall market operation was average, and recycled bottle flakes were recycled in the field. The volume of goods is acceptable, and the cleaning factory is not very interested in selling goods at low prices. The volume of raw material recycling is growing slowly, giving certain support to the recycled bottle flakes market.
The traditional off-season for textiles, downstream stockings are prudent
The current stage is the off-season for traditional textiles, and terminal demand The performance is poor and merchants have limited stocking capacity. At the beginning of the month, the rise in international crude oil futures prices boosted the market sentiment for virgin polyester. Virgin polyester products rose, downstream enthusiasm for stocking increased, and the production and sales of recycled chemical fiber manufacturers improved. They appropriately increased their raw material procurement offers to attract supply. The cost side of subsequent polyester products has collapsed, the market’s bullish atmosphere has cooled down, and downstream merchants have sufficient early stockings, and the enthusiasm for purchasing raw materials has weakened. The production and sales of the recycled chemical fiber market have become sluggish, and the market has been in a stalemate. Many chemical fiber factories are operating stably. Towards the end of the second half, due to the weather, downstream inquiry intentions were weak, recycled chemical fiber manufacturers increased shipment resistance, product inventories were under pressure, and intentions to control costs increased. Some manufacturers in Guangdong slightly lowered their raw material purchase prices to reduce cost expenditures. During the off-peak demand season, recycled chemical fiber factories are cautious in purchasing raw materials and tend to operate flexibly based on their own conditions.
There is a price difference between old and new materials, so the substitution effect is limited
Recycled bottle flakes are used as polyester chips. Substitutes are affected to a certain extent by the price of new material slices. Affected by the hype atmosphere and the tightening supply of PTA at the beginning of the month, the polyester raw material market trend was upward, which provided support for the cost of polyester chips, driving the upward trend of new polyester chips, and further increasing the price difference between new material polyester chips and recycled materials. The price of crude oil fell in the middle of the month, and the cost-side support for polyester raw materials weakened. However, the cash flow of chips was in a state of loss, and the market price of chips did not show a significant decline. Towards the end of the month, PTA futures prices rose sharply due to tight spot liquidity. In addition, international crude oil stopped falling and recovered, and the polyester chip market consolidated strongly due to the boost from raw material costs. At this stage, the price difference between new materials and recycled materials still remains above one thousand yuan, and the space for mutual substitution is limited.
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