According to the price data from SunSirs, as of August 19th, the average selling price of PET is 6,000 RMB/ton, indicating an increase in price. Crude oil fell over the weekend, but rebounded slightly on Monday. Geopolitical risks (the US Russia meeting did not reach an agreement) pushed Brent crude oil up 0.06% to $66.63 per barrel, but limited transmission to polyester costs. However, as costs rose in the afternoon and the market atmosphere improved, traders pushed prices higher and PET market prices rose accordingly.

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 polyester 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.

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 are still holding a wait-and-see attitude. Downstream demand is mostly for essential purchases, which has limited driving effect on the price of polyester bottle chips.

Business Society believes that the short-term price range is between 5,900-6,050 RMB/ton. If crude oil rebounds and PTA production rate further decreases, it may test 6,100 RMB/ton; If demand remains weak or exports are hindered, or if the support level of 5,850 RMB/ton is lowered.

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