SunSirs: Cost and Demand are Favorable, China PET Prices is Fluctuating and Rising in March

According to the commodity market analysis system of SunSirs, as of March 25th, the domestic PET bottle grade price was 7,300 RMB/ton. In March, the overall PET price increased by 1.25%, with an increase of about 100 RMB/ton. The price increased by 0.19% compared to the same period last week, and by 0.27% 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. In March, the PET market price fluctuated mainly.

In March, the PET market prices showed a fluctuating upward trend, with prices at the beginning of the month at around 7,200 RMB/ton and at the end of the month at around 7300 RMB/ton. The overall price in March increased by about 100 RMB/ton. Since March, the dual raw materials of upstream PTA and ethylene glycol have provided positive support for the cost side of PET. In March, there has been an increase in equipment maintenance, and the supply side has decreased. Downstream demand for procurement is good, and the overall market shipment is smooth. There is no pressure on the inventory side, and both the cost side and the demand side are favorable, driving the rise in PET prices.

In terms of cost: Upstream ethylene glycol shows a strong trend, with increased equipment maintenance and reduced supply side. In addition, crude oil prices have risen for several days in the early stage, forming a supportive effect on the cost side of ethylene glycol. Currently, the overall market is mainly in the early stage of consumption, and there are signs of narrowing in the ethylene glycol market in late March. It is necessary to continue to pay attention to the situation of equipment operation. In March, the upstream PTA factory's operating rate reached about 76%, and the PET factory's operating rate reached 87%. The overall market has entered the maintenance season, and the operating rate has gradually begun to decrease. In late March, some enterprises have started equipment maintenance, and the supply side has significantly narrowed. PTA prices have maintained a high and stable operation, and crude oil prices in March have fluctuated. In the stage of crude oil rise, the operating rate for PET has been decreasing. Both dual raw materials PTA and ethylene glycol provide positive support, driving up prices in the PET market.

In terms of demand: Since March, the demand for downstream packaging factories has increased, inventory consumption has accelerated, coupled with seasonal warming and an increase in spring consumption levels. The demand side has been improving, and the focus of negotiations has increased. The enthusiasm of operators has also increased, and the operating rate of downstream factories has also increased. Currently, downstream demand is still showing a continuous growth. The market has entered the traditional peak season of gold, silver, and silver, with a significant increase in the number of new orders and a strong willingness to replenish downstream. The price of polyester has remained stable, moderate, and strong. The impact of the increase in crude oil prices in the past few days has driven up the price of polyester in the market. Currently, downstream demand for polyester is performing well, with a clear willingness to replenish. Domestic and foreign trade orders in the downstream market are rapidly increasing, and demand is constantly recovering, easing inventory pressure. It is expected to rise in the Full of power, stable and slightly strong operation.

PET analysts from SunSirs believe that the traditional peak season of gold, silver, and four has arrived. With the warming of the season, terminal demand is gradually recovering, and the demand for water bottle grade consumption is constantly increasing. The polyester market currently has strong replenishment demand, and it is expected that the PET raw material market is prone to rise but difficult to fall in the short term. It is expected that the price of water bottle grade PET will remain stable at 7,300-7,400 RMB/ton, and the price of fiber grade PET will be around 7,000-7,100 RMB/ton.

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