Deep In The Mire, The Market For Polyester Bottles Has Steadily Declined.

Entering the May, the market of polyester bottles was short of support, upstream polyester raw materials were running weak, most of the factory quotations declined, and the low price goods market increased again, and the mainstream focus continued to decline.

As of yesterday, the atmosphere of buying a bottle of PET bottles is still normal. Most of them are just needed pactions, and a few low positions are in short supply. In May, there are few days left. Can polyester bottles be in a bad situation?

Raw material support weakness

In May 13th, China formally announced that some tariffs were imposed on the United States from June 1st, and Sino US trade relations were becoming increasingly tense.

Of course, ethylene glycol and PTA were also affected.

Ethylene glycol, stable operation of the market, installation maintenance increased, the supply side continued shrinkage, the downstream needs more procurement, expected short-term market or shock finishing.

On the PTA side, in May 16th, with the weakening of the repurchase strength of PTA suppliers, the PTA spot experienced a cliff style fall, PTA spot fell sharply, and the atmosphere of the paction was general. The PTA market was expected to run short or weak in the short run.

Pressure on supply and demand side

After the escalation of Sino US trade tensions, polyester industry prices continue to decline, and some pet products are completely engulfed in profits.

Under the pressure of scarce orders, high inventory and cost pressures, polyester enterprises began to reduce production or even overhaul.

Of course, some pet bottle producers are also among them.

Up to now, the polyester industry's operating rate has dropped to 88.5%, a decline of 1.72% compared with the previous high level, and the overall demand for downstream terminals in the short term has been greatly improved.

Can market prices continue to bottom?

First of all, the price of raw materials for polyester bottle will be in a downward trend. In addition, ethylene glycol has been in a weak position for a long time.

Secondly, considering the current supply and demand level of bottle grade PET, although it has entered the peak season of terminal beverage consumption, the downstream demand is still weak. Due to the lack of confidence in the market, the enthusiasm of buying is relatively low, only the demand for small purchases is maintained. The pressure of the bottle plate factory is increased, and some enterprises are in relatively high storage.

Therefore, in the absence of good news stimulation, low price goods will increase or the East China mainstream paction price will be around 7450-7650 yuan / ton.