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Operation and development of virgin PSF and recycled PSF
!!Qiao Yu, Senior Analyst of CCFGroup

2019-07-12 11:07:14
Qiao Yu, Senior Analyst of CCFGroup, presents report of Operation and development of virgin PSF and recycled PSF 

Her report is mainly divided into two parts. 

Firstly, Ms. Qiao describes the different performance of polyester products amid the significant change in virgin polyester industry and analyzes the upstream and downstream market trend under the background of capacity expansion of virgin PSF. The large capacity expansion of PX may cause lower profits and prices; modest oversupply in PTA, high PX-PTA spread, peak season for start-up units around 2020; MEG capacity expands rapidly, showing obvious oversupply in 2019; polyester products experienced large ups and downs last year, while sharp downs and ups this year; virgin PSF industry cut production actively, but the profit turned higher than recycled PFY; The planned launch of virgin PSF futures wins market focus, which provides a hedging tool but also increase the complexity of the market. 

In the second part, Ms. Qiao interprets the evolution of recycled polyester industry. Amid virgin polyester capacity expansion, overseas capacity expansion and changeful macro economy, recycled polyester is shuffling. Virgin PSF capacity expands rapidly and replaces recycled PSF, which performs fierce in North China; HC virgin PSF capacity doubled, and flexible production lines may favor HC virgin PSF supply; HC virgin PSF capacity doubled, and flexible production lines may favor HC virgin PSF supply; overseas market squeezes much. Under abovementioned factors, recycled polyester industry changes sharply. The price recorded low, inventory depreciated largely and the market was pushed up by the raw materials later; the competitive advantages of recycled chemical fiber reduced sharply and its price spread with virgin one narrowed; the operating rate reached five-year low and capacities withdraw from the market or transfer. At last, combined with current operation and development of recycled PSF, she presents the direction of recycled polyester industry in the future, analyses the current issues and challenges, and points out that the temporary pain in the industry is favorable to the overall upgrading of the industry. 
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