Market review of recycled market in 2021

发布日期：2021-12-28 作者：Source:China TexNet 点击：

Time	Keynote
Jan	Plants had a short-time Spring Festival holiday, and some plants did not suspend operation, but cut operating rate. Feedstock prices were firm.
Feb	Recycled market enjoyed the strong fundamentals and most plants had no inventory. Under the expectations of inflation after the holiday and demand recovery after the epidemic got controlled, market sentiment was bullish. Commodity prices surged overall, and recycled prices moved up following the trend of virgin polyester prices.
Mar	Demand was not good as anticipated, and prices started to decline in Mar, with a decrement of about 1,000yuan/mt. Inventory in plants accumulated fast.
Apr	The market was mostly mild in Apr-Aug, especially HC re-PSF, prices were little altered. Under the coming new capacities, market competition was fierce, and moreover, some HC virgin PSF plants were willing to sell with slight deficits in order to promote sales. Solid re-PSF sales diverged.
May	Power rationing started first in Guangdong, and plants in Guangzhou, Foshan, Dongguan were required to be under off-peak power use, so plants were suspended or cut operating rate frequently. Besides, some plants had own power plants increased additional costs.
Jun	The market was sluggish. Some solid re-PSF plants were shut intensively affected by environmental protection regulation.
Jul	Re-PSF exports met resistance with surging sea freight, and some plants were still delivering the orders concluded in Mar, and the situation last till the end of the year.
Aug	Re-PSF sales were unsmooth, and plants focused on selling. Price spread between virgin PSF and re-PSF was relatively large.
Sep	HC re-PSF market was not bullish in buoyant season, and with intensive start-up of new capacities and unfavorable demand, market mindset was pessimistic. Some producers promoted sales in advance on concern about the accumulating inventory during Mid-Autumn Festival and National Day holiday. Later, the dual control policy upgraded. Promoted by the supply and cost sides, prices moved up in late Sep. What was worth mentioning that silicone oil prices rose largely.
Oct	Virgin PSF and re-PSF prices stepped upward during the National Day holiday with the power rationing and higher oil prices. After the holiday, prices continued to rise quickly. In late Oct, the power rationing policy relaxed, and demand was weak, prices turned downward.
Nov	Oil prices slumped affected by the variant Omicron and recycled chemical fiber prices continued to slip. This was the second round of sharp ups and downs this year, which was less volatile and shorter.
Dec	Filling product performed unfavorably as the winter was not cold. Solid re-PSF market was also dull. PET flake prices were easy to rise and hard to decline due to limited supply in winter. Plants plan to set off for Chinese Lunar New Year holiday earlier.

There are two rounds of sharp ups and downs this year, and prices show an M-shape. In the rest time, the market is mild and there is no obvious difference between buoyant and dull season. Affected by higher oil prices, price spread between virgin PSF and re-PSF enlarges, but due to start-up of new capacities and unfavorable demand, re-PSF prices have not risen significantly and plants focus on selling. In addition, plants are suspended operation or cut operating rate frequently this year affected by off-peak power consumption, environmental protection regulation and dual control. For 2022, market competition may be fiercer with the continual start-up of new capacities for both virgin PSF and re-PSF.