[PET Daily Review] Polyester Bottle Chip Market Narrowly Declines

1 Today’s Summary

① Haoyuan, Baihong, and Hanjiang decreased by 30, Huaren decreased by 20, Yisheng basis decreased by 20, and other factories remained stable. (Unit: Yuan/Ton)

②. Today's domestic polyester bottle chip capacity utilization rate is 73.37%.

2 Spot Overview

Based on the East China region, the spot price of polyester bottle-grade PET closed at 5730 today, down 10 from the previous working day, in line with the morning expectations.

Crude oil and raw materials continue to decline, while the prices of polyester bottle flakes remain stable in some areas and decrease by 20-30 in others. Some traders are replenishing their stocks, and end-users are buying on dips. It is reported that October transactions range from 5680 to 5790, with some slightly higher or lower; November transactions are between 5700 and 5730; December transactions are between 5690 and 5730, or futures contracts for 2511 are trading at a premium of 5-20, with little change in basis. Trading activity has improved compared to yesterday. (Unit: yuan/ton)

3. Production Dynamics

Today, the operating rate of polyester bottle chip production capacity is 73.37%. In terms of profit, the price of raw material PTA fell by 15 to 4485, the price of MEG dropped to 4190, the polymerization cost decreased by 20.92 to 5256.27, and the profit from polyester bottle flakes showed a loss of 126.26 yuan/ton.

4. Market Sentiment

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

5. Price Prediction

Crude oil and PTA continue to decline, with cost support lacking. On the supply side, although the circulation of local sources is tightening, with the recovery of logistics, arrivals continue to increase, and industry operations are stable, making the supply tend to be ample. Downstream maintains just-in-need replenishment, with a low willingness to stockpile. Considering the demand entering the traditional off-season, the polyester bottle chip market may remain sluggish. It is expected that the spot price of polyester bottle-grade chips in East China will run in the range of 5670-5780 yuan/ton tomorrow.

6. Relevant Product Information

PTA Market: East China Market PTA Price Organize and negotiate around 4495. The October main port delivery 01 offers a discount of 60-65, with warehouse receipts at a discount of 50-55; there have been transactions at a discount of 60-65 for bids. The November main port delivery 01 offers a discount of 35-40, with bids at a discount of 50-55. Weak expectations in the industry drag down the market, leading to a downward fluctuation in absolute prices in the morning, with cautious buying sentiment and light market trading. (Unit: yuan/ton)

MEG market  ： Today, the monoethylene glycol market remains weak. At the opening, the spot price in Zhangjiagang was around 4200. Throughout the session, buying interest was sluggish, and prices showed a downward trend. In the afternoon, the decline expanded, with spot prices negotiating around 4165 by the close. The spot basis was adjusted downwards, operating within the range of 01+65 to 01+67 during the day. The South China market's weakness remains unchanged, with factories cautiously purchasing only as needed, leading to light trading. 。