[PET Daily Review] Polyester Bottle Chip Market Declines

1 Today's Summary

The factory prices are mostly stable, with occasional adjustments. (Unit: yuan/ton)

② Today's domestic polyester bottle chip capacity utilization rate is 71.82%.

2 Spot Market Overview

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

Based on the East China market, today's spot price of polyester bottle-grade chips closed at 5,780 yuan, down 50 yuan from the previous working day, in line with this morning's expectations.

Crude oilThe decline in costs dragged down the market, with polyester bottle chip factories mostly reducing their quotations by 50, while some remained stable, leading to a downward shift in the market focus. Offers for September-October sources are in the range of 5770-5970, with September-October contract offers at a discount of 11 to a premium of 20, with a higher premium of 60-70 for 11; inquiries are at 5750-5780, contract 11 at a discount of 20-30, with a higher range of 5820-5850. Unit: RMB/ton.

3. Production Dynamics

Today, the polyester bottle chip capacity utilization rate is 71.82%. In terms of profit, the price of raw material PTA decreased by 55 to 4565, MEG price dropped by 34 to 4378, polymerization cost fell to 5370, resulting in a polyester bottle chip profit loss of 207.97 yuan/ton.

4. Market Sentiment

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

5. Price Forecast

Supply reduction expectations support market trends, however,Demand weakens slightly, coupled withAfter a recent narrow recovery in processing fees, there is no significant positive support. It is expected that tomorrow's polyester bottle chips may follow a trend of slight weakness due to cost fluctuations. The spot price of polyester bottle-grade chips in the East China region is expected to range between 5,750-5,900 RMB/ton.

6. Related Product Information

PTA Market: The lower end of the PTA price in the East China market is around 4565 for negotiations. The main port delivery offer for September is at a discount of 70-75 on the 01 contract, and there are reports of transactions at a discount of 80. The main port delivery offer for October is at a discount of 45-50 on the 01 contract, with no transactions reported. Weak cost constraints exist, and in the afternoon, the absolute price weakly consolidates. Downstream just-in-need buying, spot basis weakens, and trading atmosphere is average. (Unit: RMB/ton)

MEG market  ： Today, the ethylene glycol market continued its weak trend. At the opening of the morning session, the spot price in Zhangjiagang opened lower around 4385. During the session, bears still dominated the market, with negotiations maintaining recent low levels. By the close, the spot price was negotiated around 4366, and the spot basis weakened, moving from around 01+102 in the morning to 01+98 by the end of the session. The South China market operated weakly and steadily, with downstream factories mainly observing, and trading showed no significant improvement.