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Insight | Time:May 22 2018 10:28AM
Domestic and foreign PET flake prices diverge amid possible import policy change
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Though Customs has not yet released official documents, impacted by rumors over possible re-PET import policy reverse, market sentiment greatly changed. Domestic and foreign flake prices went against each other.

Domestic price falls in some areas
Recently some plant in Hebei lowered purchase price of recycled bottle bales by 100yuan/mt and a large plant in Fujian also did so. In Guangdong, prices also went lower with PET flake for HC re-PSF now prevailing at 6,300-6,500yuan/mt, pre-tax, ex-works. Reasons behind the fall in Guangdong were as follows:
1, supply rises due to warmer weather
2, impacted by the rumor, some suppliers showed more active to sell sources.
3, sales of HC re-PSF plants was plain so that they were less active in buying feedstock. 

In Zhejiang and Jiangsu, prices were stable on the whole. Most closely attended possible import policy reverse. To mention that many PET flake cleaning plants bought feedstock at a high price, yet found it hard to sell flakes at a high level. Profits thus were not as good as expected.

Overseas granular production project faces abrupt halt and foreign flake price rises
Previously domestic recycled polyester plants to respond to solid waste import ban acted aggressively to build recycled PET granular plants overseas, yet in light of the possible import policy change, these projects were abruptly halted. Some was heard to scrap cooperation contract. Capacity expansion plans were also cancelled. PET flake price in SEA rose $50-100/mt with white flakes pricing at around $800/mt.

In the coming days, if the policy change 100% comes true, foreign flake prices are likely to keep rising while domestic price to be pressed. Such a reverse gives recycled polyester plants confidence in negotiating flake prices, yet also weakens support from cost. Market sentiment and policies shall be closely followed.

As a reference, CCFGroup will hold 2018 PSF Industry Forum& the 6th Re-PET Forum on Jul 12-13, at which leaders from China Customs and the Ministry of Environmental Protection will deliver speeches to illustrate related policy changes and their influences. To better understand China import policy, you are welcomed to attend the meeting. About the conference, please refer to 2018 PSF Industry Forum& the 6th Re-PET Forum )
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