August 2024: China's PET Bottle-Grade Exports Exceed 500,000 Tons Again, Driven by Strong Demand

Strong Export Momentum and Market Outlook

From January to August 2024, China's PET bottle-grade manufacturers recorded an average monthly export order volume of around 450,000 tons, an increase of 100,000 to 120,000 tons compared to the previous year. Considering some long-term contracts signed at the beginning of the year, average monthly shipments have stabilized above 500,000 tons. Notably, export orders were concentrated from June to August, and it is expected that monthly shipments from September to December will remain at or above 450,000 tons, with some months likely to exceed 500,000 tons. However, actual shipment volumes will depend on shipping schedules.

August 2024 marked the fifth month this year with shipments surpassing 500,000 tons, highlighting the robust momentum in China's PET bottle-grade exports. In recent months, as the international market has warmed, export prices for these products have performed exceptionally well. Global demand for PET chips remains strong, particularly for small and medium-sized orders. Additionally, the introduction of PR futures has accelerated the bottoming process of the industry, prompting many customers to stock up in anticipation of low market prices.

Looking ahead, while there are expectations for new domestic production capacities to come online by year-end, concentrated maintenance in the third quarter may delay the actual startup of these capacities, limiting their short-term impact on market supply. Consequently, China's PET bottle-grade chip exports are projected to maintain a share of around 40% in the near term.

Wankai' Global Strategy and Innovation

Over the past five years, global demand for bottle-grade PET resin has grown at an average annual rate of 9.2%. In response, Wankai New Materials Co., Ltd. has intensified its overseas marketing presence, focusing on key export regions such as South America, Southeast Asia, Africa, and the Middle East. Notably, the company reported a 30.13% year-on-year growth in overseas revenue for the first half of 2024, driven by a 54.46% increase in sales to Central Asia and a 47.41% increase in Indonesia. 

Wankai is also advancing its production capabilities, with plans for a new bottle-grade PET production base in Nigeria, set to begin construction in Q4 2024 and operational by late 2025. Looking ahead, Wankai aims to further expand its production capacity in ASEAN, Africa, and the Americas, reinforcing its position in the global market for polyester bottle-grade chips.

Market Outlook and Future Strategy

In the domestic market, while a few large terminal factories have already completed their 2025 order procurement, most mainstream factories have also finished their purchasing plans for the first and second quarters of 2024. Despite a cautious sentiment among traders, there remains a replenishment demand in the market, particularly with September's spot market showing notable premiums.

Overall, the current Chinese PET bottle-grade chip market exhibits ample orders for both domestic and export sales; however, high inventory levels in the circulation stage, combined with the cooling weather, have led to a slowdown in terminal pickup speeds. According to analysis from the China Chemical Fiber Information Network (CCF), unless significant changes occur in the macroeconomic environment, polyester chip market prices are expected to remain within a stable range for an extended period.

Wankai New Materials Co., Ltd. will continue to focus on deepening and expanding its global market presence, further strengthening our technological advantages, and promoting sustainable development to maintain our leading position in the PET polyester bottle-grade chip industry.