Polyester Bottle Chip Prices Fluctuate Wildly

PET price trend chart

In 2022, at the beginning of the New Year, the market price of polyester bottle flakes rose rapidly to more than 8000 with the help of cost. In January polyester bottle chip spot circulation is tight, local is hard to find.

In addition to the rise of crude oil, the center of gravity of polyester bottle chip market fluctuated, and the spot price of water bottles in east China market rose from 7,825 CNY/ton to 8,300 CNY/ton. In late January, the Spring Festival holiday is coming. With the decrease of logistics and terminal replenishment, the price of polyester bottle flakes in east China market has been falling to around 8050 CNY/ton.

International crude oil rose on the first working day after the Lunar New Year holiday, boosting sentiment in the chemical market. The price center of polyester bottle flakes in East China rose sharply to about 8325 CNY/ton, affected by the chasing mentality, some just need replenishment. However, the downstream terminal enterprises have not fully resumed work, the market transaction is general.

Most industry insiders, for this rapid push up market, cautious wait-and-see attitude. With the raw material callback, and polyester bottle chip spot tension before the relief, the price began to shock down. As of February 14 close, east China polyester bottle sheet water bottle material transaction 7950-8200 CNY/ton, the mainstream price fell to the Pre-Spring Festival price 8050 CNY/ton.

In a short period of one week, the polyester bottle chip market has experienced a "roller coaster" type of rapid rise and fall, resulting in an increasingly strong wait-and-see atmosphere. And this round of decline has fully absorbed the early rise, with the Spring Festival before the price flat.

First of all, the supply side: In January 2022, chongqing Wankai Phase II 600,000-ton/year new device was put into production smoothly, which relieved the spot shortage to a certain extent. And during the Spring Festival holiday, polyester bottle chip industry starts normal, after the holiday factory physical inventory appeared small tired stock. Loose spot supply acted as a catalyst for downward prices.

Second cost end: PTA, Yisheng new material Line 2 3.6 million tons/year production line officially launched on January 28, as of February 14, PTA spot closed 5665 CNY/ton in East China, 195 CNY/ton higher than before the festival. In February, supply and demand maintained a small pattern of exhaustion. MEG, coal prices continue to fall, cost is difficult to find support.

In addition, polyester demand recovery is slow, dragging down the market focus of shock. On February 14, MEG spot market in East China closed at 5142 CNY/ton, 239 CNY/ton lower than before. The polymerization cost is 6566 CNY/ton, 87 CNY/ton higher than before, so the cost support is limited.

Finally, demand end, after the Spring Festival holiday from February 7 to February 15, did not hear the mainstream soft drinks out of the large factory replenishment. It is completely different from the replenishment situation of big factories after the Spring Festival in 2021. The main reason is that the purchase time has been advanced to the fourth quarter of 2021, in which the supply has been locked in advance.

Small and medium-sized bottle blank and sheet processing industry basically began to resume work on the eighth day of the first month, but the operating rate is limited, and most of the inventory, the demand for bottle sheet is weak. Domestic trade terminal performance overall weakness, become the main reason for the decline of polyester bottle chip prices.

To sum up, the short-term supply of polyester bottle chip market is relatively loose, and the demand needs to be paid attention to. If the demand is not improved, cost rises or can only continue to compress the processing fees, and the market price upward pressure is greater.