Prices of recycled polyester filament yarns (PFY) and recycled polyester staple fibre (PSF) in the Chinese market are expected to drop in the coming weeks and rise again slightly towards the end of 2021.

In the first half of October 2021, the prices of recycled PSF remained high due to tight energy supply and electricity restrictions in the country. But towards the end of October, prices dropped owing to a decrease in the prices of steam coal and chemicals in China.

Before mid-October 2021, plant operating rates declined due to dual control policy and higher virgin PSF prices. Downstream buyers showed higher buying interests, which led to a plunge in the inventory. But in late October, plant operating rates rose due to easing of regulations on power rationing and slipping downstream demand.

Similarly, prices of recycled PFY were high in the 1st half of October 2021 due to increasing feedstock prices and moderate speculative demand. In the 2nd half of October, prices of recycled PSF dropped as Chinese government reduced the prices of coal.

During the 4 weeks in October, the price of recycled POY 150D in China increased by 11.60 per cent from 7,500 yuan per metric ton to 8,370 yuan per metric ton. It then declined by 12.78 per cent to 7,300 yuan per metric ton in the 2nd week of November.

Now the price of recycled POY 150D is expected to further decrease by 3.94 per cent to 7,012.35 yuan per metric ton in the 2nd week of December. It may rise slightly by 3.03 per cent in the remaining weeks of December to reach 7,224.83 yuan per metric ton.

The price of recycled close virgin PSF in China also increased by 14.26 per cent from 5,850 yuan per metric ton to 6,684 yuan per metric ton in the four weeks in October. It declined by 7.65 per cent to 6,172.50 yuan per metric ton in the 2nd week of November and is expected to plunge further by 5.87 per cent to 5,810.40 yuan per metric ton in the 2nd week of December. It may show slight rise of 1.51 per cent in the remaining weeks of December 2021 and may reach to 6,897.99 yuan per metric ton.