Last week (December 1-5), the price of PET bottle flakes showed a trend of first rising and then falling. According to the price data from SunSirs, as of December 5, the average selling price of PET was 5,785 RMB/ton. The overall situation is dominated by the cost side game, and the weak supply and demand side continues to constrain the space for price rebound.

The cost side is the core of price fluctuations. At the beginning of last week, with the support of geopolitical premiums and phased destocking of upstream PTA, raw material prices rose, driving the bottle tablet market upward. But in the second half of the week, due to the failure of the expected US oil adjustment logic and the seasonal accumulation of international crude oil, cost support significantly weakened, leading to a decline in bottle chip prices.

The loose pressure on the supply side is evident. Last week, the weekly operating rate of bottle tablets was 72.9%, an increase of 2% compared to the previous week. In addition, there are plans to restart equipment in late December, which adds pressure on new production capacity. The available days of factory inventory increased by 0.43 to 16.49 days compared to the previous week.

The demand is in the traditional off-season, with a year-on-year decline of 5.7% in soft drink production from January to October. Downstream purchasing intentions are sluggish, and caution is being exercised. Market trading is sluggish, making it difficult to form effective support for prices.

SunSirs believes that the price of PET bottle chips is expected to weakly consolidate in the range of 5,700-5,850 RMB/ton this week, with a high probability of cost fluctuations. The loose supply and demand pattern is unlikely to change, and there is no hope for short-term volume increase on the demand side. The market may continue to maintain a cautious and wait-and-see trend.

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