Recycling Hollow: Where Orders Are Low, Prices Fall, Where Is The Bottom Of The Market?

Introduction: The "golden nine silver ten" hot market is not reflected in the recycled hollow market in 2019. Some market participants hope to enter the November, with the gradual lowering of temperature to stimulate market demand.

At present, after entering the November, the temperature of all parts of the country has indeed declined in our expectation, but the sales volume of recycled hollow and imitation feather products has not improved, and the price has always shown a trend of weakness. Many market participants can not help asking, where is the bottom of this year?

Although temperatures have dropped, demand has not improved and prices continue to decline.

As shown above, the main production area recycling hollow market in the near future continues the light delivery and continuous price trend. As of November 12th, part of the order of 7D/15D and silicon in Zhejiang area was priced at 7500-7700 yuan / ton, including factory tax, and some low prices in the vicinity of 7400 yuan / ton. Shandong area 7D/15D plus silicon part of the order in 6300-6500 yuan / ton factory excluding tax, no silicon order price in 6100-6300 yuan / ton factory excluding tax. Part of the order of 7D/15D in Fujian area is 6500-6700 yuan / ton without tax.

Data show that as of today's closing, the mainstream price of 3D 7D/15D in Zhejiang area dropped to 7500 yuan / ton factory tax, which dropped 1700 yuan / ton compared with the beginning of the year, and dropped by 18.5%. The mainstream price of 3D 7D/15D in Shandong declined to 6400 yuan / ton, excluding factory tax, which dropped by 2000 yuan / ton compared with the beginning of the year, or 23.8%.

Why prices continue to slide?

It is understood that since September, the recycled hollow market has entered the next channel, which has led to the continuous decline of market prices. The previous articles have been analyzed in detail, and the reasons for this decline can be summarized as follows: First, domestic demand has shrunk. Two, the regeneration hollow supply pressure is bigger, and has no quality and price advantage. The three is the impact of native hollow and imported goods.

It is understood that most of the enterprises in Zhejiang indicated that the demand for recycled hollow three dimension by the end user decreased by 30%-50% compared with the whole year in 2018, and some enterprises indicated that the shrinkage was 70%. The shipments of the down market are expected to last for only 2 months, roughly in October and November.

Where is the bottom of the market?

Since September, many market participants are more concerned about this problem. But today, the market price has fallen by September, fallen over October, and ushered in the fall of November, but the bottom price of the market is still blurred and unpredictable.

In view of the background of low oil prices, the growth of raw hollow staple fiber and the expansion of raw materials, the competitive advantage of the hollow hollow market will become more evident in the next few years. However, under the pressure of the weak domestic economic situation, the serious excess of domestic renewable hollow capacity and the severe export situation, the road to the recycling hollow market will be densely covered in the future, and the "bottom" of the market may be touched for a short time.

In 2019, it was an imprint year for the recycled hollow market. Numerous market participants once said, "this year is the worst year in the last decade." but for the next few years, this year may be the best year for the recycling hollow market. Perhaps after several years of capacity and structural adjustment, the regeneration hollow market will usher in a good prospect. After all, the industry prospect of the recycled plastics deep processing market is always good.