Downside Pressure on Costs Leads to Weekly Drop in Polyester Bottle Flakes Prices (Nov. 17-21)

November 21st, according to reports

This week (November 17-21), the price of polyester bottle chips showed a downward fluctuation. On the 17th, it fell by 15 CNY/ton to 5,745 CNY/ton due to the drag from crude oil; subsequently, the price stabilized temporarily, and on the 21st, it declined again by 10 CNY/ton, closing at 5,710 CNY/ton. Throughout the week, the offer range for goods in the East China region gradually decreased, adjusting from 5,650 - 5,800 CNY/ton to 5,630 - 5,750 CNY/ton. According to data, on November 21, the average selling price of PET was 5,740 CNY/ton. The market supply and demand were both weak, with insufficient support from the cost side, and the overall trading atmosphere was light.

Cost-side support continues to weaken: This week, international crude oil prices fluctuated downward, pulling along the prices of upstream raw materials like PTA and ethylene glycol, which in turn softened across the board. As a result, polyester bottle chip costs lack meaningful support. For instance, on the 21st, influenced by falling crude oil and raw material prices, the center of gravity in the bottle chip market shifted lower. The sluggish cost transmission made it increasingly difficult for factories to maintain higher price quotes, prompting some companies to slightly adjust their offers downward in line with raw material trends.

Supply is generally loose: This week, the industry's operating rate is 70.9%, a decrease of 2% from the previous week. Despite situations such as maintenance and restarts at China Resources' facilities and the delay in commissioning of the new Dongying Fuhai facility, the overall supply in China remains stable with ample spot supply. Meanwhile, the inventory days of bottle chip factories increased by 0.46 days from the previous week, and the slow accumulation of inventory further reinforces the loose supply situation.

Demand-side procurement remains weak: We are currently in the traditional off-season for demand, compounded by the fact that pre-Spring Festival stocking has yet to kick off. Downstream factories are mostly focusing on essential restocking needs, resulting in low purchasing enthusiasm and a lack of willingness to chase price increases. Additionally, soft drink production from January to September fell 5.5% year-on-year, reflecting sluggish performance in the end-market beverage industry—making it difficult to effectively boost consumption of bottle flakes. As a result, actual order placements in the market are scarce, leading to an overall subdued trading atmosphere.

The export market remains weak: This week, the export quotations from Chinese polyester bottle chip factories have generally stabilized, with slight decreases in some areas. In East China, the mainstream quotation is $760–770/ton FOB Shanghai port, while in South China, the quotation ranges from $750–765/ton FOB main ports. The lack of positive support in the export market makes it difficult to offset the weak demand in China, and the overall weak situation remains unchanged.

Overall, it is believed that in the short term, the polyester bottle chip market in China is expected to continue in a fluctuating trend, with prices likely to vary within the range of 5650-5800 CNY/ton. The trend will mainly follow the price dynamics of upstream raw materials.