2019 Fourth Quarter Polyester Bottle Piece Low Profit Or Normal?

After the high profit stage of PET bottles in 2018, the demand season is coming to an end in 2019. This year, the bottle making industry is not very optimistic.


In the polyester industry chain in 2019, raw material end support was limited and price shock was downward. Ethylene glycol market has been under enormous pressure from high inventory. According to long Zhong information monitoring data, the low end price of ethylene glycol is near 4205 yuan / ton, which appeared in mid May and early July respectively. The price of ethylene glycol is higher than PTA, but since mid August 2018, ethylene glycol price is obviously lower than PTA price. PTA's current spot price is 5120 yuan / ton, compared with the same period last year, the price dropped by 4180 yuan / ton, or 44.95%. The biggest weakness of polyester raw materials is the increasing international trade relations. Terminal textile and clothing exports are blocked, and domestic demand is limited, thus suppressing the cost side market.


Polyester industry chain one of the public products, PTA high profits have been the focus of the industry. According to long Zhong information monitoring data, the first quarter of 2019 was dragged down by the upgrading of international trade relations, and filament profits were hovering under the loss line. In the two quarter, there was a series of overhaul of the Formosa aromatics explosion and the maintenance of several sets of PTA devices, such as Ningbo Taiwan 1 million 200 thousand tons, Shanghai Petrochemical 400 thousand tons, Yisheng Ningbo 2 million tons, and so on. PTA profit increased rapidly and occupied the profit margins of other polyester products. In July Fuhai set up a 4 million 500 thousand ton / year PTA plant overhaul, resulting in a PTA profit of 2019 high. Subsequently, the PTA market returned to a narrow range after the explosion of the Sino US OTC options. In August, the profit ratio of polyester products was relatively at a reasonable level, and there was no extreme case.


Since 2019, the price of PET bottles has shown a more consistent trend with PTA. From the profit chart of PET bottle, we can see that the price of bottle flakes has dropped from 8700 yuan / ton in early April to 6775 yuan per ton, or 22.13%. At the same time, PET bottle industry profits also declined rapidly, from 698.28 yuan / ton high profit state to -195.63 yuan / ton loss. From the end of July to the beginning of August, the profit of PET bottle production was turned into a deficit, and at present, it kept at 115.13 yuan per ton.

Up to now, there are no other new production capacity of PET bottles in 2019. Dalian Yisheng 600 thousand tons bottle flake device is planned to go into operation in October. The late bottle market is facing an increase in supply, but the peak season is gradually subsiding, and demand support is weak, or the overall operating rate of PET bottle chips is declining. The trend of PTA in late stage or become the main factor affecting the price of bottle flake.