Prices for Reprocessed PFY and PSF are Expected to Fall in the Chinese Market
In the Chinese market, prices for recycled polyester filament yarns (PFY) and recycled polyester staple fibre (PSF) are projected to fall in the coming weeks before increasing marginally towards the end of 2021. Due to the country's tight energy supply and electricity restrictions, recycled PSF prices remained high in the first half of October 2021. However, near the end of October, prices fell due to a drop in the price of steam coal and chemicals in China.
Plant operating rates fell before mid-October 2021 due to the dual control policy and higher virgin PSF prices. Downstream buyers expressed greater interest in purchasing, resulting in a drop in inventory. Nevertheless, plant operating rates increased in late October due to a relaxation of power rationing regulations and a decrease in downstream demand. Likewise, recycled PFY prices were high in the first half of October 2021 due to rising feedstock prices and moderate speculative demand. Prices of recycled PSF fell in the second half of October as the Chinese government reduced coal prices.
Plant operating rates fell before mid-October 2021 due to the dual control policy and higher virgin PSF prices. Downstream buyers expressed greater interest in purchasing, resulting in a drop in inventory. Though plant operating rates increased in late October due to a relaxation of power rationing regulations there was a decrease in downstream demand.
In China, recycled close virgin PSF price increased 14.26% in four weeks, from 5,850 yuan per metric tonne to 6,684 yuan per metric tonne. It fell 7.65% to 6,172.50 yuan per metric tonne in the second week of November and is expected to fall another 5.87% to 5,810.40 yuan per metric tonne in the second week of December. It may rise by 1.51 percent in the final weeks of December 2021, reaching 6,897.99 yuan per metric tonne.
Nowadays, most consumers are gradually shifting toward sustainable textiles made from recycled materials. This is due to growing consumer awareness of environmental protection and the benefits of using sustainable fabrics. Increased demand for Polyester Staple Fiber in various industries is expected to boost the market in the upcoming years. Polyester staple fibre is widely used in multiple industries, including textile, construction, home furnishings, automotive, and filtration. The growing textile industry is driving demand for polyester staple fibre, which is also regarded as the most suitable, thinner, and less expensive alternative to cotton and other fibres due to consumer preferences for sustainable fashion.
Furthermore, polyester Staple Fibers are high-tech because of their antimicrobial properties, providing advanced protection against foul odours and other infections. Because of these advanced qualities, product demand increases and supports market growth. Furthermore, it is widely used in the furnishing industry for bed sheets, pillows, carpets, sofas, and rugs, fueling the market growth. Hence, the Global Polyester Staple Fiber Market is approximated to expand in the future due to increased demand for recycled products.