Weak domestic demand to suppress the performance of PET bottle is still weak

- May 07, 2019-

Since the middle of April, the domestic PET bottle market has gradually started to make a pullback since the high point of the year under the dual negative pressure of upstream cost and downstream demand. Up to now, it has dropped by 350 yuan/ton. As for the afternoon market, due to the poor guidance of raw materials and the continued weak downstream demand, the short-term market may remain a stalemate game.

After entering April, although domestic PET market experienced a small rise under the pull of PTA of raw materials, since the middle of the year, as the downstream demand continued to be weak, the order follow-up slowed down, and the export orders of bottle chip manufacturers decreased, most manufacturers maintained the previous order delivery.

The 600,000-ton equipment of chenggao started to maintain normal supply this month, which has a certain impact on the market.

Some big factories and middle dealers are facing great sales pressure, the market low price offers gradually increase, the real price negotiation focus is constantly lower.

The price of the market in east China has dropped to 8300-8450 yuan/ton, the market mentality tends to be cautious, for the future, how will the market trend, let us briefly analyze.

First of all, the PTA market of raw materials has maintained a narrow range of shocks recently, which has weakened its guiding role in the PET market.

Short-term PTA spot market or maintain shock pattern.

At present, PX gradually tends to be sorted out, the cost end is supported firmly, under the high profit and low inventory of PTA, the maintenance device plan of some factories is delayed.

But the mainstream PTA producers buy back a large number of spot, and the other mainstream suppliers a large number of goods, the short-term PTA spot market wait and see atmosphere strong, temporarily maintain the pattern of concussion.

Secondly, from the perspective of market supply, although the current bottle chip manufacturers spot resources are relatively tight, the mainstream manufacturers orders have been received to may, but some manufacturers still have spot supply, and intermediate dealers have more spot resources, the market did not appear tight situation.

At present, the average starting load of bottle chip manufacturers has reached more than 90%, and the devices of mainstream bottle chip manufacturers all maintain high-load operation, while the fanya device only maintains a starting load of 50% all year round. There is also a restart plan for another set of 600,000-ton devices, and the spot market resources will gradually increase.

Because most orders of bottle chip manufacturers have been received until may, and the follow-up of new orders in the later period is not good, it is expected that the spot supply will appear relatively loose state after may.

Again, from the point of the downstream demand, because of the downstream companies purchase nodes in advance, in the first quarter has foot more ample season raw material inventory, and slow the rise of temperature, more southern rainy weather, season has pushed back domestic demand for beverages, demand is difficult to improve for bottle flakes as a whole, after April, the bottle market demand began to appear evident in the cool, market decline in new orders, short-term demand will be hard to change color.

Limited by weak demand, domestic PET market performance is still weak. Despite bottle chip manufacturers' price reduction and promotion, the volume is still poor. Recently, the PTA market of raw materials is narrow and volatile, and the cost guidance is not strong.