Chemical cost support, PET bottle flake prices shaking up!

Recent slow progress in negotiations between Russia and Ukraine due to geopolitical issues, the United States commercial crude oil stocks continue to reduce concerns about supply, March 30 WTI crude oil prices for $ 107.82 per barrel, up 41.72% from the beginning of the year, Brent crude oil prices for $ 113.45 per barrel, up 43.64% from the beginning of the year.

PET bottle flake prices rose at a high level, but the terminal enterprise demand to follow up poor, not strong will to receive goods, the rise is limited.

 Upstream-related factors.

At present, the upstream raw material MEG spot price of 5169 CNY/ton, compared with the beginning of the year rose 6.49%.

And raw material PTA prices continue to move up, PTA spot price of 6,095 CNY/ton, up 7.88% from the beginning of the year, driven by the rise in international crude oil, coupled with the PTA factory plant maintenance increase, supply reduction, the cost side of the good support prices rise.

However, the impact of the epidemic in some areas of logistics blocked, the continuation of the rise may encounter some resistance.

Downstream-related factors.

PET bottle flake factory has not heard of the recent parking plans, weekly opening rate of 85.82%, more stable. PET bottle flake market price of about 8800 CNY/ton, compared with the beginning of the year increased by 600 CNY/ton, up 7.32%. However, due to the impact of public health incidents, transportation was blocked in some areas and the flow of goods was tight.

Terminal enterprises are tightening their work, demand is slow to follow up, the mood is not good to catch up, and the high price of goods is more resistant, just need to replenish the main, the actual transaction is general.

To sum up, the PET market is still supported by the cost side in the short term, and the bottom is relatively solid, but the downstream factory opening has not improved significantly, coupled with the impact of the recent new crown epidemic, demand continues to be weak, the will to receive goods is not strong, the field trading atmosphere is general. PET is still expected to rise in the short term, but there is a risk of pullback in the medium to long term.