On Regeneration

The biggest event in the process of recycling development in recent years is the 2017 solid waste ban (implemented in 2018-2019). After several years of rebalancing supply and demand, the oversupply has become more serious :(

As a result, in the past two years, there have been production stoppages, fluctuations are particularly frequent, whether it is high-end regeneration or low-end regeneration, profits have declined, and even regeneration hollow, there has been a collective loss since the industry. However, it is worth mentioning:

1. Demand recovery, recycled PET assessment oversupply.

The most pulling factors in 2022: the epidemic, real estate, rising interest rates in the United States. All three are being repaired, and the first wave of the epidemic has passed; Encourage the consumption of bulk commodities such as housing and automobiles in 2023; The US interest rate hike is also coming to an end. The overall demand is expected to be good, although there is still a pressure on the whole because of the recession in Europe and the United States, some say that demand has bottomed out, and the overall keyword is repair. For regeneration, the key point is that with the recovery of demand for catering, tourism, travel and other needs, people's demand for soft drinks has recovered, recycled PET bottle recycling has increased, and the expansion of raw bottle flakes is still continuing, we assess that there will be an oversupply of recycled PET in 2023, and the factory is expected to press the price of recycled bottle flakes after the heat, but the supply pattern is still tight after the opening year.

2. The supply has increased, and the oversupply in 2023 will be even more felt.

Although demand is recovering, supply has increased even more, and many plants scheduled to start production in 2022 have been postponed to 2023, and oversupply at factories is felt even deeper.

3. Regeneration: The future is bright and the road is tortuous.

A very critical time point is 2024-2025, many brands require a certain degree of recycling content For example, the European Union requires the recycled content of PET beverage bottles to reach at least 25%, Pepsi requires RPET 25%, Coca-Cola recycles plastic at least 50%, and there is a time point in 2030, institutions and brands continue to increase the use of recycling, even reaching 100%, or 50% of products are replaced by environmentally friendly materials. Our country is also, in April 2022, three departments: accelerate the implementation of waste textile recycling, increase the utilization of waste textiles and clothing, and high-quality large-scale production of bottle flakes directly spun recycled polyester filament; Large-scale, low-cost production by chemical method. Overall regeneration, green, environmental protection, sustainable and degradable is still the development trend. High-end regeneration has also been expanding until 4, so the future of regeneration is bright.

However, the development of regeneration is also not easy, many factories of domestic enterprises are insufficient, there are also native factories into the field of regeneration, the scale of renewable production capacity is increasing, oversupply is serious, high-end profit compression low-end homogenization competition is fierce, raw material supply is not stable, including in the future if one day food-grade RPET is released, the new balance of fiber and non-fiber is a new situation. The road is blocked and long, and the line is coming.