July PET Bottle Grade Prices Dip Slightly but Remain Resilient

2024-08-12

According to the commodity market analysis system of SunSirs, the price of PET bottle grade has slightly rebounded this month, with a volatile operation showing a certain downward trend. As of July 31st, the average price of PET (Polyethylene Terephthalate) bottle grade is 7,130 RMB per ton, approximately $982 per ton based on the current exchange rate.

Raw Materials Market Overview

Crude Oil: On July 30, Brent crude oil was priced at $79.05 per barrel, down 7.28% from the start of the month, when it was $85.26 per barrel. Similarly, WTI crude oil fell 8.57% to $74.73 per barrel from $81.74 per barrel at the beginning of July.

Ethylene Glycol: Early July saw stable prices for ethylene glycol, but they have since slightly decreased and are currently stable. As of July 29, the average price for Chinese oil-based ethylene glycol was 4,640 RMB per ton, up 1.73% from 4,561.67 RMB per ton on July 1 in East China. While initial stockpiling expectations drove prices up, current low inventory levels offer some price support. Nonetheless, demand remains weak due to reduced polyester production and sluggish end-user demand in the weaving industry.

PTA: The PTA market experienced a rise and subsequent fall in spot prices throughout July. Concerns about weak oil demand led to a decline in European and American oil futures to their lowest levels in six weeks. Weak market fundamentals and diminished cost support have contributed to lower PTA prices. By the end of July, China PTA industry operating rates were approximately 82%. With many PTA facilities set to restart in August, capacity utilization is expected to increase, potentially boosting supply. However, with ongoing production cuts in downstream polyester and weaker demand expectations, there may be an accumulation of PTA inventory in August.

Market Outlook

The PET analyst from SunSirs believes that the current bottle grade PET market is generally stable with small fluctuations, and compared to the raw material side, it shows strong resilience against downturns. It is expected that the market will remain within a narrow range of fluctuations in the short term.

However, the actual evolution of this pattern will closely depend on the dynamic changes in the raw material market and the implementation of subsequent production equipment maintenance plans. Specifically, fluctuations in raw material prices and the implementation of maintenance plans will become key factors affecting the future trend of the PET market.