[Daily Review of Polyester Bottle Chips] Crude Oil Declines, Polyester Bottle Chip Market Follows Suit

1 Today's Summary

1. Mainstream factory cargo quotations in June are in the range of 7,200-7,300, with Yisheng basis at 500. (Unit: RMB/ton)

2. Today, the domestic PET bottle chip capacity utilization rate reached 70.69%.

2. Spot Overview

Table 1 Summary of Domestic Polyester Bottle Chip Prices (Unit: yuan/ton)

Based on East China, today the spot price of polyester bottle-grade water bottle chips is 7090, down 10 from the previous working day.

Crude oil prices continue to decline, with weak cost support, leading to a downturn in the polyester bottle chip market. Today, the mainstream price for polyester bottle chips in the East China market is 7000-7150, with reports of mainstream transactions at 7000-7100, primarily involving low-priced sources, while high-priced transactions at 7150 are sporadic. Some traders are replenishing stocks with urgent needs, and trading activity has improved compared to yesterday. The basis is weakening, with 2609 rising 400-450 points. Large terminal manufacturers are making small replenishment purchases.(Unit: yuan/ton)

3. Production Updates

Today, the capacity utilization rate of PET bottle chip was 70.69%. In terms of profit, the price of PTA rose to 5,705, while the price of MEG fell to 4,197. The polymerization cost increased by 12.55 to 6,306.59, and the profit of PET bottle chip was 183.41 yuan/ton.

4. Market Sentiment

Table 2 Domestic Polyester Bottle Chip Upstream and Downstream Practitioners' Sentiment Expectations (Updated Weekly on Monday)

5. Price Prediction

Crude oil continues to decline, and chemical products are generally running weak. With insufficient cost support and downstream demand performing below expectations, the PET bottle chip market is likely to remain sluggish. It is expected that next week, the East China market for water bottle-grade spot material will be 6,950–7,150 yuan/ton. Attention should be paid to the commissioning progress of new units.

6. Related Product Information

PTA market: As of noon, the spot price of PTA in East China was negotiated at around 5,695. For this week and next week, main port delivery bids were at a premium of 230-235 yuan/ton over Sep futures; for main port delivery before the end of July, bids were at a premium of 235-245 yuan/ton over Sep futures, with deals concluded through negotiation. During Asian trading hours, crude oil pulled back again. After the absolute price center moved up in the morning, it fell back. Spot basis strengthened, with just-in-time demand and bargain hunting replenishment buying. Market negotiations were average. (Unit: yuan/ton)

MEG Market: Today, the ethylene glycol market showed a weak consolidation trend. In the morning, spot prices in Zhangjiagang opened around 4210, but buying interest was low throughout the day, with prices mostly retreating to below 4200 in a narrow range. By the afternoon, spot negotiations were around 4190, and the spot basis remained relatively stable. The daily trading range was between 09+160 and 09+165. The South China market operated weakly, and with downstream demand cautious, market trading was stuck in a stalemate.

7. Data Calendar

Table 3 Overview of Domestic PET Bottle Chip Data (Unit: 10,000 tons, %)