Future Market Forecast of Recycled General Fiber

On the macro level, oil prices do not have the basis for continuous decline. On the one hand, due to the risk of bank spillovers, both the government and the central bank are implementing rescue policies, and market confidence is gradually recovering; On the other hand, based on the fundamentals of crude oil itself, inventories are still low, and supply continues to shrink. Saudi Arabia is also taking steps to maintain stability. Therefore, after the release of market pessimism, the crude oil market is expected to follow the supply logic again, stabilize and rebound. The rebound in crude oil may give confidence to the downstream and restore their ability to pick up goods.



In terms of supply, the manufacturers of recycled fiber are starting to maintain production, and some manufacturers are shutting down for maintenance. There will be plans to resume production in the near future. However, currently, the inventory pressure of manufacturers is mostly around 13 days, which is at a normal inventory level. Therefore, there is little pressure on the market supply side.



In terms of demand, renewable ordinary fiber is entering the off-season, and downstream demand will be mainly in demand. In addition, the current price of renewable ordinary fiber is relatively stable, and the rebound in crude oil will increase the downstream capacity to pick up goods. It is expected that renewable ordinary fiber will be mainly in demand for shipment in the near future.



In terms of cost, some recycled hollow fiber manufacturers have begun to lower the price of bottle chips, while recycled fiber manufacturers may be willing to follow suit. However, the quantity of bottle chips is small, and there is not much room for negotiation. There may be room for cost reduction, but there is not much room.



In terms of related products, polyester staple fiber will rebound with the cost rebound, but the price difference with recycled ordinary fiber is difficult to pull to over 1000 yuan. The competitive pressure faced by recycled conventional fibers remains unabated. In addition to the inherent competitive pressure, there is also a long-term suppression of polyester staple fibers, and it is difficult for recycled conventional fibers to have significant volatility in the long term.



To sum up, after this wave of negative sentiment in the renewable hollow market, it will be mainly characterized by tight volatility in the near future.