Cost support collapses, polyester bottle chip prices decline

1 Today's Summary

① Many factories have lowered prices by 50-90, while other factories have reported stability (unit: yuan/ton).

②. Today's domestic polyester bottle chip capacity utilization rate is 73.05%.

2. Spot Overview

Based on the East China region, the spot price of polyester bottle-grade PET closed at 5700 today, down 20 compared to the previous working day, in line with the morning forecast.

Terminal demand is weak, and raw materials are under pressure to decline. Cost support has collapsed, leading to polyester bottle chip factory prices being mostly reduced by 50-90, with the market focus slightly declining. Some traders and downstream buyers are restocking, with transactions reportedly concentrated between 5680-5700. In the afternoon, the decline narrowed, and trading became quiet. (Unit: yuan/ton)

3. Production Dynamics

Today, the capacity utilization rate of polyester bottle chips is 73.05%. In terms of profit, the raw material PTA price fell to 4645, MEG price fell to 3690, polymerization cost decreased by 36.51 to 5226.21, and the profit of polyester bottle chips is a loss of 126.21 yuan/ton.

4. Market Sentiment

Table 2: Sentiment Expectations of Domestic Polyester Bottle Chip Upstream and Downstream Practitioners (Updated on Monday)

5. Price Prediction

Raw material support is generally weak, and with downstream demand being mediocre, factories and holders are under increased pressure to take orders. However, due to the tightening circulation of certain supplies, the polyester bottle chip market may temporarily remain stable.The spot price of PET bottle-grade chips in the East China region is expected to be 5650-5750 yuan/ton.

6. Related Product Information

PTA market:East China MarketPTA PriceBottom edge ， Negotiation reference around 4645. This week and next week Main port delivery offer for January is around a discount of 30, bid at a discount of 32-35 for negotiation. Before the end of December, the main port delivery offer for January is at a discount of 30, with bids around a discount of 35. Commodity sentiment is sluggish, with absolute prices weakly consolidating with costs in the early morning. Spot basis remains roughly stable, and market discussions are subdued. (Units: Yuan/ton)

MEG MarketMorningEthylene Glycol MarketThe weakness persists. At the opening of the early morning session, the spot price in Zhangjiagang opened around 3700. During the session, buying interest was sluggish due to the increase in main port inventories, with prices dipping to a low of 3680 before stabilizing slightly. By the midday close, spot negotiations were at 3692-3693, with the spot basis showing weakness, fluctuating between 01-10 and 01-15 in the morning. The South China market remained weak and stable, with petroleum-grade delivery prices quoted at 3950. Buying interest was cautious. The US dollar market declined, with near-month cargo negotiations in the 438-440 range in the morning, and a 3-5 USD/ton premium for distant months, with no transactions heard.