SunSirs: Cost Support Is Weak, China PET Bottle Chip Market Is Fluctuating Downward after the Holiday

In early October, the overall performance of the PET bottle chip market was weak, with prices fluctuating downwards. According to the price data from SunSirs, on October 10th, the market price in East China closed at 5,812 RMB/ton, a decrease of about 40 RMB/ton from before the holiday. Faced with a weak market, most PET bottle chip companies choose to lower their prices, ranging from 20-50 RMB/ton, resulting in a shift in the actual transaction center of the market.

The ceasefire agreement reached between Palestine and Israel has eased the instability of the geopolitical situation, leading to a decline in international oil prices. This is the root cause of weakening the cost of the chemical industry chain upstream. The PTA and ethylene glycol markets, which are direct raw materials for PET bottle chips, have also shown weak performance. On October 10th, the spot negotiation price of PTA in East China fell to 4,485 RMB/ton. The collective weakening of upstream raw materials has resulted in the loss of important cost support for PET bottle chips.

Despite the downward trend in prices, the market supply is relatively sufficient. The overall operating rate of the industry remains at a level of 73.37% to 78.62%, which means that the factory's output has not significantly decreased and the market's spot supply is relatively sufficient. Insufficient demand follow-up: Downstream end users, such as those in the soft drink packaging industry, generally adopt a wait-and-see attitude, with procurement strategies mainly focused on cautious follow-up according to demand, lacking enthusiasm for large-scale stocking. The sluggish peak season has led to an imbalance between supply and demand, suppressing prices.

Overall, SunSirs believes that there is currently no significant positive trend in supply and demand, and the price of PET spot market may adjust narrowly with the cost side in the short term. The expected price may fluctuate within the range of 5,680-5,850 RMB/ton.

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