According to the price data from SunSirs, as of August 15th, the average sales price of PET was 5,947 RMB/ton, and the overall price of PET bottle chips showed a downward trend from August 1st to 15th. On August 1st, the market price of PET bottle flakes was 6,060 RMB/ton, which dropped to 5,972 RMB/ton on August 4th. On August 14th, some companies' quotations continued to decline, such as Sanfangxiang's quotation of 5,870 RMB/ton, Dalian Yisheng's quotation of 5,960 RMB/ton, and Hainan Yisheng's quotation of 5,880 RMB/ton. On August 15th, driven by the rebound of crude oil, prices in East China rebounded by 10 RMB/ton to 5,900 RMB/ton, and PET market prices rose. Sanfangxiang rose by 30 RMB/ton, Hainan Yisheng rose by 30 RMB/ton, and Dalian Yisheng rose by 40 RMB/ton, but transactions were still mainly based on small orders for essential needs.

On the cost side, OPEC+production expectations and uncertainty about US tariff policies led to Brent crude oil falling to $68.64 per barrel (-2.21% MoM), directly dragging PTA spot prices down to $4,870 per ton and ethylene glycol falling below $4,400 per ton. The aggregation cost decreased by 0.9% month on month to 5671 RMB/ton, and the bottle processing fee was repaired to 385 RMB/ton (month on month+86 RMB/ton), but the production gross profit still fell to -214 RMB/ton, forcing factories to raise prices.

Supply side: The bottle tablet industry will be in a period of concentrated production capacity from the second half of 2023, with relatively loose supply expectations. However, since July, there has been a concentrated production reduction in the bottle chip industry. In August, the main PET bottle chip factories continued to maintain a production reduction of 20% or more, which started in July. This has eased inventory pressure, and some specifications are tight, providing some support for prices.

On the demand side: Downstream demand has shown a flat performance, affected by the continuous decline in raw materials and the depreciation of inventory in the early stage. The atmosphere for new weaving orders has not improved significantly, and buyers still hold a wait-and-see attitude. Downstream demand is mostly for essential purchases, which has limited driving effect on the price of PET bottle chips.

Overall, the future price of PET bottle chips is expected to show a fluctuating trend, with a short-term increase supported by costs. The expected price range is between 5,900-6,050 RMB/ton. However, in the medium to long term, there is still pressure from oversupply and limited room for price increases.

If you have any enquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.