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China virgin and recycled PET industrial status and outlook
Mr. Hao Shangkun, Product Manager of CCFGroup

2017-10-19 17:17:06
Mr. Hao Shangkun, Product Manager of CCFGroup gave his speech of China virgin and recycled PET industrial status and outlook 

Mr. Hao divided his report into three parts. 
The first part is virgin PET industrial status. Prices for virgin polyester present a V shape. The operating rate maintained at five-year high in the second quarter, though it declined due to falling prices. The growth rate of the total production in 2017 is expected to reach over 10%, creating a new high in recent six years. Entering Q2, inventory declined rapidly on speculative and end-user demand release. So far, average margin of each polyester product is at 6-year high. 

The second part is recycled PET industrial status. Trending like virgin fiber in V form, prices hit the yearly low in around May. Import growth continued to fall. With the surge of the production of polyester, the recycling volume also hikes at a same rate. Consumption of virgin PET in drinks industry keeps growing this year with the increment expected to reach 300kt. 

The third part is virgin and recycled PET industrial outlook. Virgin PFY capacity is much larger than recycled one. Recycled PSF mainly follows virgin PSF market trend, but also compete with each other. Some old polyester units restarted after M&A in 2017, and not many new capacities are expected to start, which are mainly PFY and PET bottle chip units. Till 2020, growth rate of feedstock capacity is higher or flat than that of polyester capacity.
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