Polyester bottle slices: Supply tightens, the market opens a price increase model

Entering July, at the beginning of the month, driven by the rise in the polyester raw material PTA and ethylene glycol markets, the domestic polyester bottle sheet market started to rise steadily. Starting from last weekend, although the polyester raw material market fell from its high level, polyester bottle sheet companies started to restrict production and insured price model, and market prices rose again. At present, the prices for goods in the East China polyester bottle sheet market from July to August range from 7,100 to 7,250 yuan/ton, an increase of 2.87% from the end of last month.

In the first half of this year, the domestic polyester bottle sheet industry added 2.4 million tons of new production capacity, with a production capacity growth rate of 14.14%. In the second half of the year, companies such as Yisheng and Sanfangxiang still had multiple sets of new production capacity for polyester bottles. The pressure of overcapacity in the domestic polyester bottle sheet industry has increased. Due to the concentrated expansion and expansion of production by polyester bottle and chip companies, the market supply remains relatively abundant at this stage, which has put pressure on the market. The polyester bottle and chip market has remained at a low level and hovering stage for a long time. However, polyester costs remain high. Therefore, production of polyester bottle and chip companies continues to be at a loss, especially after June, when the production loss of polyester bottle and chip companies reaches more than 300-400 yuan/ton. This year, the average production profit of polyester bottle sheet companies is around-264 yuan/ton, and the production pressure of companies has increased.

In order to maintain the processing costs of enterprises, polyester bottle and sheet companies have recently launched a "production restriction and price insurance" model. Hainan Yisheng's 750,000-ton polyester bottle and sheet device was stopped for maintenance near the weekend. Yisheng Dalian's 2.1 million-ton polyester bottle and sheet unit started construction in early July, reducing the entire line to 90%. Henan Anhua's 300,000-ton polyester bottle and sheet device was stopped for maintenance on July 1 for half a month. Its 800,000-ton polyester bottle and sheet unit in Sanfang Lane is expected to start shutdown for maintenance on July 10, and the restart time is not yet determined. Zhejiang Wankai's maintenance plan has been postponed until mid-July, involving a production capacity of 650,000 tons and is expected to last for around 45 days. East China No. 1 Plant plans to switch to production of 250,000 tons of polyester bottle and chip equipment.

Currently, July-August is the peak season for terminal beverage demand. The start of beverage factories remains high, and the demand for polyester bottle tablets continues to increase. Polyester bottle sheet companies mainly focus on order delivery, and some specifications of the manufacturers are in tight supply. As the market price of polyester bottles gradually rose, terminal buying slowed down, the market was mainly cautious and wait-and-see, and the market trading atmosphere became lighter. However, as polyester bottle sheet companies continue to advance in price increases, the market order situation in the later period needs to be followed up.

As the Palestinian-Israeli situation and the impact of the U.S. hurricane weaken, the potential supply risks of international crude oil are temporarily eliminated, and demand-side concerns may emerge. International crude oil prices may have room to decline in the near future. Without cost support, the market for polyester raw materials PTA and ethylene glycol weakened, and the support for the market from the raw material side weakened. However, as polyester bottle sheet companies increase their production restrictions and demand support, the market price of polyester bottle sheet will remain high in the short term.