SunSirs: Cost Driven, China PET Market Price Increase

According to the analysis system of the commodity market of SunSirs, as of May 22, the domestic price of water bottle grade PET is 7,200 RMB/ton, and the price of fiber grade PET is 6,907 RMB/ton. Currently, the overall PET raw material market is showing a strong operation, with favorable support from the cost side of raw materials and crude oil, driving up the PET market price. The market center is mainly upward, and downstream buyers are cautious in pursuing growth, with sporadic replenishment as the main demand. Currently, the overall PET market has a strong wait-and-see atmosphere.

The cost side of PET still has support, and the overall market quotation is stable and slightly strong. Although the overnight crude oil price has declined, the upstream raw material side has favorable support. Currently, PET factories are operating at a high price, and the focus of negotiations is on a high level. Downstream demand procurement is maintained, and they are resisting high priced sources of goods, The upward momentum of PET is weak.

In terms of cost: The upward trend of ethylene glycol is volatile and consolidation is strong, and the market performance is strong. Recently, the ethylene glycol market has shown a strong performance, and market sentiment has improved. At the same time, the supply and demand structure of ethylene glycol has changed. Currently, the crude oil market is operating in a volatile manner, and there is some support on the cost side. It is expected that the ethylene glycol market will be mainly volatile and upward in the short term, and more upstream PTA devices are expected to start operating by the end of May, The situation of destocking in the PTA market is considerable. Overall, there is some support in the PTA market, and it is necessary to continue to pay attention to the equipment situation in the later stage. It is expected that the PTA market will maintain its current trend in the short term, maintain a stable, medium to strong trend, and operate at a low level of inventory.

In terms of demand: The operating rate of the downstream polyester short fiber market is around 85%, and the overall market is showing a stable trend. The supply side is relatively stable, and inventory has decreased, mainly maintaining a low level of operation. Recently, international crude oil prices have shown a weak trend, but the prices of dual raw materials have fluctuated. Overall, there is still some support on the cost side. The short fiber market quotation is stable, with a slight increase in price. The overall market is cautious and watchful. As the inventory pressure of enterprises decreases, manufacturers have shown a reluctance to sell, and the overall market transaction atmosphere has increased. The willingness to maintain prices has increased, and in the short term, the operation is mainly narrow and strong.

PET analysts from SunSirs believe that there is still support in the cost aspect of the polyester market at present, The PET market is mainly driven by price increases, and the focus of negotiations is on strong adjustments. It is expected that the PET market will maintain a narrow upward trend in the short term, The mainstream price for PET water bottle grade is around 7,200 RMB/ton, and the mainstream price for fiber grade is around 6,900 RMB/ton.

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