Demand Recovery Is Slow, Polyester Bottle Price Is Difficult To Pick Up.

Crude oil prices continued to fall as the public health events overseas intensified. Polyester bottle flakes slide with the raw materials.

In terms of price, crude oil fell sharply in the last week of February, and the overall decline of chemical industry blocks dragged down the PTA obviously. The price of polyester bottle production enterprises has been narrowed down, and the focus of the market has dropped rapidly. Domestic public health events developed smoothly, but the consumption of terminal soft drinks was greatly reduced, and the finished products and semi-finished products inventory of soft drinks enterprises in the downstream were relatively high. Sheet and preform processing enterprises resumed to 80%-90% many times, followed orders were slightly inadequate or affected the demand for bottle flakes. During the week, the downstream is more afraid of falling down, and the terminal replenish the goods on demand. Middlemen are cautious in trading and limited in strength. As of February 28th, the market price of polyester bottle flask was 6100 yuan / ton, a decrease of 3.17% compared with the same period, and a decrease of 26.06% over the same period last year.

Table 1 price comparison tables for PET bottles in East China

Supply and downstream demand, as of February 28th, the soft drinks industry started to remain low. On the one hand, the return time of factory workers is affected. On the other hand, the digestion of raw materials is slow, and the finished products and semi-finished products are backlog seriously. During the week, most of the bottle enterprises started to stabilize, and some local manufacturers had a load plan. Among them, a 1 million ton plant in a large East China plant continued to overhaul 400 thousand tons, and another 600 thousand tons started 70% in March 1st to gradually increase the load. As of February 28th, the operation of PET bottles industry was temporarily stable at 59.60%, flat compared to last week, down 14.72 percentage points over the same period last year.

In the short term, the cost side PTA continues to accumulate, and downstream textile and weaving starts to recover slowly. Personnel problems remain a major factor. Demand has not been significantly recovered, PTA or weak adjustment.

Demand side, although domestic public health events have developed steadily, tourism and conference have not yet been restored in the short term, and terminal consumption has not been improved. Supply side, bottle stock production enterprises short term inventory is difficult to alleviate, restart the device and plan the new commissioning rate will be delayed. Considering the impact of bank financial policy factors, we need to continue to focus on manufacturers' dynamics. The bottle market is expected to remain weak next week.