In mid-to-early October, supported by costs, the price of polyester bottle flakes continued to rise. The profits of manufacturers are in the red, but the support of raw materials for bottle flakes is limited, and as the demand becomes lighter in the market outlook, the price of polyester bottle flakes may fluctuate lower.
The price of polyester bottle flakes continues to rise , but the factory lost profits
Comparison chart of price and profit of polyester bottle flakes:
Data source: Longzhong Information
After entering October, with the support of cost-end PTA and ethylene glycol, the price of polyester bottle flakes continued to rise. The price of water bottle materials in the East China market rose from 4,750 yuan/ton on the first working day after the holiday to 4,975 yuan/ton on the 19th, an increase of 4.74%. Looking back on this rise in prices, the fundamental reason is the boost on the cost side.
PTA supply and demand will not change significantly in the short term and will basically remain balanced. However, as downstream textile orders increased, polyester staple fiber was supported, and filament market prices rose sharply. Coupled with the listing of short fiber futures, speculators took the opportunity to pull up prices, and both the volume and price of the short fiber market increased.
On the other hand, the trading performance of the polyester bottle flake market is mediocre. A major terminal soft drink manufacturer is replenishing supplies in the fourth quarter and the first quarter of next year. Other transactions on the market were mainly traders’ short filling orders, and a small amount of replenishment was just needed. New orders from bottle flake factories have increased, but actual shipments are not as good as expected, and inventory pressure still exists. After the price of raw materials rose sharply, the production cost of polyester bottle flakes increased significantly, and profit margins were compressed to negative numbers.
Draged by weak demand, the market outlook for polyester bottle flakes is worrying
Sustain After last week’s intensive replenishment, cargo merchants and downstream processing companies have sufficient supply of goods, and it will take some time to digest the inventory. Trading in the polyester bottle flake market returned to light this week, with terminal replenishment in a bad mood and sporadic transactions. On the supply side, although some bottle flake factories have reduced production for maintenance, the overall efforts are limited. The daily supply is around 28,700 tons, an increase of 5,000 tons compared with the same period last year.
The current bottle flake factory inventory is at a high level, and the daily shipment volume is also lower than the output. It is common for factories and traders to urge delivery of goods. As the end of the month approaches, under the pressure of payment collection, orders with deposits paid are urged to be executed, and some holders ship goods at low prices under the premise of full payment. The demand for oils and fats is stable, water materials are significantly reduced, and the start-up of the soft drink industry has dropped sharply due to seasonal effects. The possibility of early maintenance cannot be ruled out. Due to problems with follow-up orders, sheet and bottle preform processing companies have not started operations as well as they did in the previous period. The weak performance on the demand side will drag down the price of bottle flakes to consolidate weakly. As of October 20, the mainstream price of polyester bottle flakes and water bottle materials in the East China market is 4,950 yuan/ton. </p
