Discussion On The "Behind" Demand For PET Bottle End Demand

The 7-8 month is the terminal consumption season of PET bottle industry. But the flask market is not well received at present, and its purchasing power is weak. Orders for large soft drinks factories in the terminal have been locked ahead of schedule, and new demand in the market has increased.


Bottle grade PET has the characteristics of safety, plasticity, high transparency and so on. It can satisfy consumers' requirements for product safety, personalization, consumption experience and so on. Therefore, it has gradually become the preferred packaging material for many food and fast food enterprises. It is understood that China's bottle grade PET is mainly used for bottle packaging, sheet and a small amount of engineering plastics. The largest proportion is bottle type packaging, accounting for about 85%. Secondly, sheet ratio accounted for 10%, and engineering plastics accounted for 5%. In the downstream industries of bottle grade PET, the leading position of bottle packaging is difficult to shake. The beverage industry dominates the bottle type packaging, and the proportion of edible oil bottles and condiment bottles is relatively small. In addition, there are still a small number of pharmaceutical packaging and pesticide bottles. The changing trend of packaging bottle grade PET demand mainly depends on the development of the downstream beverage industry. At present, more than 80% of China's large and medium-sized beverage enterprises are equipped with their own bottle blank and bottle blowing devices. Bottle processing plants mainly include Shanghai Purple River and Zhuhai Zhongfu, while some edible oil, pesticide bottles and small beverage plant bottle blank need to be collected. Bottle flakes are less used in sheet industry, and most of them are used for additives.


Bottle grade PET is a plastic product that can be directly contacted with food for a long time. The beverage industry is the highest consumption area of PET bottles, and it is also one of the relatively fast developing industries in the domestic food industry. Obviously, the output of soft drinks in China has dropped sharply in the past three years. By the end of 2019, the output of soft drinks in China was 42 million 186 thousand tons. Compared with the same period in 2018, the output of Chinese soft drinks dropped by 2 million 640 thousand tons, a decrease of 5.89% compared to the same period last year. With the changing demand structure of beverage market, packaging drinking water still accounts for the largest proportion, and healthy beverages gradually form the main body of new industrial structure. Environmental sustainability is currently one of the most important issues affecting the beverage industry. More and more consumers are aware of the impact on the environment, and manufacturers of large bottled water and soft drinks have announced plans for recyclable or reusable materials. Shanghai formally implemented garbage classification in July 1, 2019. Waste plastic bottles belong to recyclable goods. Recycling of plastic bottles can not only solve environmental problems, but also achieve recycling of resources. At present, the recycling rate of PET plastic bottles in China is almost 100%, which is once again used in the non food grade plastic packaging industry. It has a certain impact on the dosage of new PET. Next August, blowing bottle enterprises enter the off-season production, enterprises start or save down space, then demand for bottles or tablets will be further reduced.

The use of PET bottles in China's sheet industry is relatively small, but the demand potential needs to be excavated. At present, the PVC material is widely used in the sheet market, and PVC will decompose the toxic methyl ortho phthalate two, because now the demand for environmental protection is increasing, the domestic sheet materials are turning more to bottle flakes. And China's exports to developed countries product packaging has gradually escalated to PET sheet packaging. Thus, the potential demand of bottle flakes in sheet industry is likely to increase.


According to customs data statistics, as of the end of May 2019, the export volume of PET bottles was 1 million 405 thousand and 600 tons. Compared with the same period last year, an increase of 265 thousand and 100 tons, an increase of 23.24%. According to the export situation in past years, it is estimated that the export volume will maintain a stable increase of about 21.45% in 2019. The top ten countries are concentrated in Southeast Asia, South Asia and Northeast Asia. The trade relations between these countries and China are normal.

To sum up, the domestic demand for PET bottles in 2019 decreased compared with the previous years, which will weaken the price of bottle flakes. The rise and fall of raw material PTA has become an important factor leading to bottle price. At present, industry practitioners should not only focus on bottle makers, but also focus more on the device dynamics of PTA manufacturers and the progress of international trade relations.