SunSirs: Cost Boosting Polyester Bottle Chip Prices Rise in China (June 9-13)

Last week, approaching the weekend, due to the escalation of the situation in the Middle East, international crude oil prices surged, driving the overall rise of the polyester chain and the PET market to experience a significant increase. According to the price data from SunSirs, as of June 13th, the average selling price of PET (polyester bottle flakes) was 6,104 RMB/ton, an increase of 2.34% from the beginning of the week.

In terms of cost, international crude oil surged by 10% on June 13th, setting a new high since February and driving the overall rise of the polyester chain. PTA production is mainly based on crude oil, and changes in crude oil prices will indirectly affect the price of bottle chips. The low industry processing fees have given factories a certain willingness to raise prices, which to some extent supports the price of polyester bottle chips. For example, on June 12th, due to the low industry processing fees, the PET market saw a narrow upward adjustment.

On the supply side, the reduction in production by some large factories, coupled with the tight spot circulation in some areas, drove up the PET market price on June 13th. However, overall, the production of bottle flakes is running at a high level and production capacity is increasing. Against the backdrop of loose supply and demand, prices are still under long-term pressure.

In terms of demand, the recovery of downstream demand is weak, and the replenishment of inventory is limited to small orders for essential needs, lacking the driving force to chase up prices, which limits the increase in polyester bottle chip prices. For example, on June 12th, although polyester dual raw materials rebounded during the day, due to the limited increase in downstream demand, the action force in the PET market only slightly increased.

Overall, SunSirs believes that the price increase is mainly due to the rise in costs, and the PET market price may continue to adjust narrowly in the short term. The actual trend still needs to pay attention to changes in external news, device changes, and demand recovery in the future.

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