End Of 2019, Soon, The Market For Polyester Bottles Is Finally Struggling.

The end of 2019 is coming. With the strength of the cost side, especially ethylene glycol's "skyrocketing", the final "madness" of PET bottle market is coming to a close. Weak demand for downstream, most of the bottle manufacturers need to ease inventory, short term pressure is difficult to release quickly. At the same time, high cost led to the loss of cash flow in bottle production, and this situation lasted for more than a month, coupled with slow delivery in the field, and the loss is expected to continue.

Two thousand and nineteen Annual PTA/MEG East China market price trend chart

In the early December, the market price of ethylene glycol in East China increased to 4725 yuan / ton again. Wharf inventory is delayed by cargo delay, the whole arrival is postponed, and the turning point of inventory storage cycle is moved back again. Polyester demand side, the polyester market starts to stabilize, the market just needs to perform stably, and has certain support for MEG01 contracts and spot. On the 12 day, the source of ethylene glycol pollution was not resolved, resulting in a certain contract gap in some polyester factories, and the focus of the East China market continued to rise to 5650 yuan / ton. The actual port volume is less than expected, and the spot volume remains tight. On the afternoon of 17 noon, the Yangtze River waterway was closed for weather reasons. The tight spot situation aggravated. The spot market was hard to find, and the spot price of ethylene glycol in the East China market was up to 5860 yuan / ton. In December, the ethylene glycol market vividly played a rhapsody of "skyrocketing", and successfully replaced PTA as the focus of the polyester market. The most important concern is the price of glycol.

Two thousand and nineteen Cash flow chart for polyester bottles in 2006

As the spot price of ethylene glycol has been rising again and again, the market of PET bottles has also risen. At the beginning of December, the raw material glycol was narrowed up and the price of flask changed little. While the downstream demand continues to be weak, many of the industry is expected to be empty, and replenishment strategies are more often used. On the 12 day, the Hon BANG 2 million 200 thousand ton PTA plant in Jiangyin has entered the overhaul. The PTA spot market is running warmly, and the East China market has risen to 4835 yuan / ton. In addition, glycol prices are tight and prices jump. Polyester double raw material strong performance, pushing up the market focus of PET bottle. Manufacturers have raised their quotations, and the price of bottles in the East China market has risen to 6475 yuan / ton. However, due to the slack demand side, the bottle piece is far behind the raw material side, and the cash flow loss of the bottle sheet is aggravated. The industry is skeptical about the conclusion of the US China trade negotiations and the right amount of stock is ready for downstream. Subsequently, the agreement reached in the first stage of trade between the United States and China has greatly boosted the confidence of the polyester market. The enthusiasm of picking up goods in downstream industries increased. Coupled with weather reasons, polyester raw materials are rising. Bottle makers actively increased, and the price of bottles in the East China market rose to 6650 yuan / ton, and the price of high-end goods was 6800 yuan / ton. Downstream facing the high bottle market, high cautious, turnover returned to the past light. Up to now, the average monthly profit of bottles and tablets in December is -142.91 yuan / ton, the lowest in 2019.

On the whole, although there is cost support, the bottle market also wants to go up, but in the high inventory of manufacturers and the poor demand for downstream, after all struggles, it is also difficult to escape the loss dilemma. The remaining days in 2019 are few, and I wish the bottle piece market will soon turn over the losses to win.