1. Price divergence: Weak in North China, firmer in South China

Close virgin re-PSF prices went upward in March following the higher virgin PSF, but there were divergences. Hebei (North China), targeting low-end fabrics (polyester/cotton, polyester grey fabric or workwear), saw HTLS close virgin re-PSF offers at 6,150–6,550yuan/mt. Jiangsu/Zhejiang (East China), focused on high-end apparel and differentiated blends, commanded 6,300-6,800yuan/mt, with premium quality near 7,000–7,300yuan/mt, and GRS-certified recycled PSF for spinning reached 8,100–9,500yuan/mt.

2. HC re-PSF prices are lower than close virgin re-PSF

HTLS close virgin re-PSF prices have been partly higher than HC re-PSF prices. HC re-PSF demand is weak (off-season), pressuring prices. By late March, when HTLS close virgin re-PSF prices were firm, HC re-PSF prices have dropped, to 6,200yuan/mt in Jiangsu, below the HTLS close virgin re-PSF price levels.

3. Limited substitution of virgin fiber

The virgin-recycled PSF for spinning price spread widened above 2,000yuan/mt in March, triggering minor substitution. This was concentrated in product for spinning (especially chip-spun and premium high-tenacity) in Hebei, North Jiangsu, Jiangyin, and Fujian. Volumes were modest. Sustained spreads could lift substitution.

4. Growth in colored and non-woven segments

Raw white fiber remains constrained by virgin PSF competition. Instead, colored and non-woven markets accelerated. 2026 new capacity (partly delayed 2025 projects) focuses on colored and wool-type fibers, with expansions continuing through 2027.

5. Overseas orders inflow

Earlier market speculation suggested that Europe and the US may front-load imports in April-May to hedge inflation risks if conflicts persist, which could benefit China with its stable supply. However, feedback from major exporters of close virgin re-PSF shows no obvious rebound in overseas orders so far. We will continue to monitor this trend.