[PET Daily Review] Polyester Bottle Chip Market in Stalemate

1 Today's Summary

1. Taibao, Tamron, Haoyuan, Yisheng, and Sanfangxiang have stable prices, while other factories have reduced prices by 10-80. Unit: Yuan/Ton

The utilization rate of domestic polyester bottle chip production capacity today is 68.49%.

2 Spot Overview

The spot price of polyester bottle-grade chips in East China closed at 5780 today, remaining unchanged from the previous working day and basically in line with the morning expectations.

Raw materials are fluctuating weakly, lacking support. However, some polyester bottle chip supplies are tightening, and the mentality of factories and holders is relatively positive, with offers being firmer compared to raw materials. As the National Day holiday approaches, downstream and traders are not very enthusiastic about entering the market, resulting in relatively stagnant transactions, mainly focusing on arranging deliveries. It is heard that the supply for September-October is traded at 5710-5860 or futures contract 2511 with a discount of 10 to a premium of 30. (Unit: yuan/ton)

3. Production Dynamics

Today, the capacity utilization rate of polyester bottle chips has reached 68.49%. In terms of profit, the raw material PTA price remained stable at 4590, MEG price decreased by 5 to 4295, polymerization cost decreased by 1.67 to 5381.64, and the polyester bottle chip profit had a loss of 201.64 yuan/ton.

4. Market Sentiment

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

5. Price Prediction

As the National Day holiday approaches, there are many uncertainties, and factories and inventory holders are mainly focused on arranging shipments, with a calm attitude towards selling. The Zhuhai China Resources plant has resumed operations, combined with the weakening impact of the typhoon, which may lead to a more relaxed flow of goods in South China. However, due to concentrated shipments and previous logistics impacts, the distribution of goods remains tight in some areas, and the supply pressure is average. Before the holiday, influenced by raw materials, the polyester bottle chip market may experience weak fluctuations and consolidation, with the spot price of polyester bottle-grade chips in East China expected to range between 5,700-5,850 yuan/ton.

6. Related Product Information

PTA Market: East China market PTA price45850150606570100145-5252-55/

MEG Market  ： Morning Ethylene Glycol MarketIn the morning session, the market saw a certain rebound trend. At the opening of the market, the spot price in Zhangjiagang opened around 4285. During the session, stimulated by the news of a significant decrease in main port inventory, the market negotiation focus shifted upwards. By the midday close, spot negotiations were conducted around 4305-4310, with the spot basis strengthening. The morning negotiations were in the range of 01+66 to 01+70. The South China market remained stable, with oil-grade delivery prices quoted at 4430, and buying interest was lukewarm. In the USD market, the negotiation range in the morning was 505-509 with no transactions reported.