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    Lack Of Positive Factors, Polyester Bottle Slice Autumn Gradually Stronger?

    2019/8/22 15:10:00 0

    PET Bottle Flakes

    Due to the lack of positive factors in the market, the recent market performance of PET bottles is not very hot. Bottle makers and traders expect the market to be weak. Therefore, it is expected that the PET bottle market will continue to shake in a short time.


    Raw materials are weak.

    Raw materials, PTA processing interval has dropped to below 1000 yuan / ton level, especially RMB appreciation further compress PTA processing area, PTA margin of safety is gradually increasing.

    Although PTA has announced a number of device maintenance plans, but the big factory overhaul plan has not yet been fully implemented, so PTA rebound drive is still slightly less. On the MEG side, although the domestic supply and demand side continues objective expectations, there is a lack of good momentum in macroeconomic aspects, coupled with a massive overnight decline, short term MEG or continuation of the shock pattern. Overall, the raw material ends are not obvious for downstream support.

    Supply side started to upgrade

    At present polyester factory operation rate has picked up. But the main reason for the recovery is based on the stabilization of polyester prices and the better production and sales volume at the bottom of the previous low price.

    Of course, PET bottles are no exception. As of August 20th, the operation rate of polyester bottle film industry was 80.10%, which was higher than that of the previous one or two days. But last week, the Sino US trade war was rekindled. The terminal demand is still in panic. This will inevitably make polyester bottles in the channel of exhausted stock.


    Demand side is mostly on the waiting list.

    From the perspective of downstream demand enterprises, its recent attitude is still more cautious, and procurement attitude is mainly on demand procurement, so the continuity of production and sales volume of later bottles is still to be observed. However, due to the limited market supply of bottle vase, enterprises have the capital to maintain price stability, but the willingness to purchase actively is low.

    As of the morning of August 21st, the market price of PET bottle has been partially reduced. The East China market is 6900-7000 yuan / ton, and the Southern China market is 7000-7100 yuan / ton.

    To sum up: Recently, the new orders of PET bottle manufacturers have not followed up well. Manufacturers are facing some pressure of shipping, but the supply side is relatively stable. Therefore, supply and demand are weak in the market, but the current pet bottle market has dropped to a relatively low level, and PET bottles continue to lower their price intention. (source: lung Chung, Guotai Junan)



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