[pet daily report] crude oil drives up polyester bottle flake prices

1 Today’s Summary

Mainstream factories' March supply quotations are in the range of 8800-9100, with Yisheng's basis at 450. (Unit: RMB/ton)

Today, the domestic polyester bottle chip capacity utilization rate is 71.72%.

2. Overview of Spot Goods

Table 1: Summary of Domestic PET Bottle Flake Prices (Unit: RMB/ton)

Based on the East China region, the spot price of polyester bottle chip water bottle grade is 8635 today, +110 compared to the previous working day.

3. Production Dynamics

Today, the operating rate of PET bottle-grade chip capacity reached 71.72%. Regarding profitability, the raw material PTA price rose to RMB 6,830/ton, while the MEG price fell to RMB 5,429/ton. The polymerization cost increased by RMB 172.67/ton to RMB 7,685.69/ton, resulting in a PET bottle-grade chip profit of RMB 349.31/ton.

4. Market Sentiment

Table 2: Domestic PET Flake Upstream and Downstream Stakeholders’ Sentiment and Expectations (Updated on Monday)

5. Price Forecasting

6. Relevant Product Information

PTA Market: The daily price increase of PTA in East China narrowed, with the overall atmosphere being generally tepid. Over the weekend, the situation in the Middle East remained tense, and strong oil prices supported the firmness of the spot price center. The morning session opened with negotiations around 6870. The situation on the downstream side was not clear, and due to concerns about the demand side, the enthusiasm for procurement was hindered. The overall market atmosphere was light, and by the end of the day, the increase in the domestic PTA spot market had narrowed to 6830 RMB/ton. In terms of the basis, the expectation of a reduction in supply was strong, and the downstream rigid demand remained stable, leading to the basis strengthening in a fluctuating manner. It was heard that the May contract was traded at a discount of 50-60 RMB/ton. (Unit: RMB/ton)

MEG Market: Today's ethylene glycol market showed an initial upward trend followed by a decline. At the opening, influenced by geopolitical factors, the Zhangjiagang spot price opened around 5400. The price attempted to rise, breaking through the 5500 resistance level, but buying pressure at higher levels was limited, leading to profit-taking and market pressure, causing the price to fall back. The spot price fell to around 5400 in the morning and stabilized. In the afternoon, buying interest remained weak, and the price continued to decline, closing at around 5365 for the spot. The spot basis strengthened significantly, with the 05-10 spread initially running, then strengthening to the 05+5 to 05+10 range. There were almost no local supply quotations in the South China market, while off-site arbitrage supplies were cautious due to increased market fluctuations, resulting in light trading activity.

7. Data Calendar

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