In April,19,2018,Ecology department, Commercial department, National Development and Reform Commission, and The Customs Bureau issue an announcement as to taking waste plastics from the industry from [List of solid wastes that can be used as raw materials for restricted imports] to [List of solid wastes that can be used as raw materials for banned imports].
The announcement comes into force in December,31,2018.That means that Prohibition policy of wastes PET further upgrades, also making the supply of recycled PET market in tight .
Absolutely, the goods that got the more impact is polyester staple fiber and chips .For the polyester staple fiber ,the reason is that it is dominant in the recycled market ,and the coincidence degree of downstream application field is high. For the chips ,the reason is that some enterprises raise the substitute supply——the use of chips due to the supply of recycled PET market which is in tight after announcing policy.
But in 2018, the melt-PTA directly spinning polyester staple fiber and the chips performs badly, far inferior to PET bottle grade, melt spinning POY and other products.
In the long run, however, with the promotion of the policy, the import of recycled PET in China will drop to freezing point after this year, which means that the regenerated polyester fiber industry will lose 1/3 of its raw materials.
While the substitute supply will not be able to popularize the industry for the time being. In short term, recycled polyester fiber industry under employment, high prices have become the norm。
Currently, it is been more than half a year since the Prohibition policy of wastes PET .The influence of the virgin polyester market has been weakened.
But this year, the price difference between recycled polyester staple fiber and melt-PTA directly spinning polyester staple fiber has been maintained at the level of 200-500 RMB / ton for a long time.
In some times, even keeping pace with the melt-PTA directly spinning staple fiber. In the circumstances that the product quality is inferior to the melt-PTA directly spinning staple fiber, the recycled market is in a difficult situation.
Moreover, in 2018, the melt-PTA directly spinning polyester staple fiber industry again ushered in the expansion peak, the old production capacity also restarted one after another, and the supply increases, the melt-PTA directly spinning polyester staple fiber price and the profit level having been appeared to rise. But this also will continue to squeeze the recycled market share.