SunSirs: Strong Cost Support, China PET Prices Showed an Upward Trend

This week, the PET bottle grade market has been operating in a narrow and strong range. According to the analysis system of the commodity market of SunSirs, as of March 14th, the domestic PET bottle grade price was 7,266 RMB/ton, an increase of 0.08% compared to the same period last week, and an increase of 0.64% compared to the same period last month. Currently, the mainstream price of water bottle grade is between 7,300-7,400 RMB/ton, and the fiber grade price is around 7,000 RMB/ton

This week, the PET market prices showed a narrow range with a strong trend. At the beginning of the week, crude oil prices fluctuated, and the price of PET dual raw materials received effective support in the short term. Cost side support was positive, and PET quotations were stable, medium, and strong. As of now, the supply of PET is sufficient, with downstream centralized procurement and a positive negotiation atmosphere. The mainstream price of water bottle grade is between 7,300-7,400 RMB/ton, and the fiber grade price is around 7,000 RMB/ton. The fiber grade PET plant has resumed operation, and the supply has slightly increased, The recovery of downstream demand is slow, and the supply of maintenance for water bottle grade PET devices is reduced. The cost side is expected to have some support. In March, fiber grade PET was in a narrow decline trend, but due to PTA in the raw material side and strong prices from manufacturers, the profitability level on the market was repaired.

Entering the maintenance season soon, there is some support for the upstream PTA cost side, and the supply side has decreased. Thanks to upstream concessions, the PTA processing difference has rebounded, and the price is around 400 RMB/ton. In March, both PTA supply and demand have improved. Currently, upstream PTA is selling smoothly, consuming inventory normally, and the operating rate has reached about 90%. The main force of PTA futures has increased by 26% compared to the previous day. Currently, crude oil prices continue to rise, PTA has good cost support and is prone to rise but difficult to fall in the short term.

This week, the polyester market has been mainly volatile, with manufacturers offering discounts and taking orders. Prices have remained strong, and most downstream raw material stocking is in the season from the end of March to early April. Currently, inventory is being consumed normally, but with the recovery of the market, the future decline is not obvious, and prices are mainly operating in a narrow range. The number of new terminal orders is slowly increasing, and the overall trend is mainly volatile and consolidating. In the short term, there is limited room for price increase, and downstream demand is recovering slowly, The main focus is on essential procurement, and continuous attention needs to be paid to inventory situation. There is no obvious willingness to stock up.

PET analysts from SunSirs believe that the current PET spot supply is relatively sufficient, with a high overall market starting point. The concentrated maintenance of upstream PTA and the continuous rise in crude oil prices provide strong support for the cost side. The PET market is currently showing significant positive trends, and with downstream demand gradually recovering, purchasing enthusiasm is still acceptable. It is expected that the PET market will remain stable and strong in the short term, and prices will continue to rise.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.