The current equity inventory of polyester bottle flakes is at a lower level than other polyester products. The profit margin is at an upper-middle level. Let’s explore the reasons based on the supply and demand of polyester bottle flakes:
The current storage capacity of polyester bottle flake manufacturers is relatively loose, mainly for two reasons:
On the one hand, construction starts are at a low level compared with the same period last year. During the Spring Festival, due to the impact of public health emergencies, domestic land and sea transportation were not smooth, resulting in goods being unable to be shipped. In addition, everyone actively responded to the call and consciously “stayed at home”, so there were fewer gatherings and dinners. This caused a chain reaction, resulting in a significant reduction in soft drink consumption. Due to inventory pressure, most bottle chip manufacturers reduced production and load to varying degrees. The industry’s operating rate continued to remain at a low position, and the operating rate was once as low as around 59%.
It was not until early April that the start-up of the polyester bottle flake industry increased to about 85.79%. However, there are still devices with a total production capacity of about 2.05 million tons parked (specifically, East China A large factory has 1.2 million tons, Anyang, Henan, 300,000 tons, a factory in East China has 400,000 tons, and Wuliangye has 150,000 tons;) About half of the production capacity is planned to be restarted around late May, but whether it can be restarted smoothly remains to be seen. The average start-up rate of the polyester bottle flake industry in April this year was 78.38%, a decrease of 7.88 percentage points compared with the same period last year.
On the other hand, the large number of accumulated orders is concentrated during the peak shipping season. At the end of March and early April, due to the drag on the cost side, the mainstream price of polyester bottle flakes in the East China market was negotiated at 5050-5150 yuan/ton. The mood for bargain hunting was high and the transaction volume was high. This not only attracted various downstream small and medium-sized enterprises and middlemen to actively replenish goods, but also attracted The idle funds outside the market were used to stock up on goods.
It is currently the peak season for traditional shipments in the bottle tablet industry, especially on the eve of the May Day holiday. The overall high-speed free shipping is low, and the number of shipments in the industry has increased significantly. According to feedback from some manufacturers, they are busy until late every day receiving rush orders and arranging shipments. There are dozens of chemical trucks lined up at the door waiting to be loaded. The daily output and shipment volume of most mainstream manufacturers are basically the same, and even worse, they control the pace of shipments. In addition, the operations of major downstream soft drink manufacturers are also gradually increasing, and shipments are also recovering. For example, a soft drink company continues to ship around 4 cars per day; demand from small and medium-sized customers also remains stable.
The price of bottle tablets is known to be dominated by the cost side, and in 2020 it is fundamentally due to the macroeconomic and crude oil More impact. The price of PTA, the main raw material for bottle flakes, is at a historical low, and ethylene glycol has also exceeded previous lows, so the production cost is relatively low.
In addition, the inventory pressure of manufacturers is small, and mainstream bottle tablet manufacturers have sufficient orders. For example, Hainan Yisheng Yuanyue is currently preparing to receive orders in November. Dalian The supply of goods is released in September; China Resources releases part of the supply in August, and the main supply is released in September; Sanfangxiang receives orders from June to July, and Wankai releases the supply in recent months. Although orders in the soft drink industry are often delayed because domestic beverage demand is lower than in the same period last year, the overall industry start-up is steadily increasing.
The demand for small and medium-sized sheet processing companies, especially the production of protective masks, disinfectant bottles, medical blister boxes, and anti-epidemic drink packaging bottles, has increased significantly. Increased bottle flake consumption. The spot market is still tight, so prices are firm and profit margins are relatively abundant. The highest profit value is close to 900 yuan per ton. The average profit of polyester bottle flakes in April was 707.11 yuan per ton, an increase of 25.44% compared with the same period last year. In comparison with the profits of other polyester products, the performance of polyester bottle flakes is very eye-catching. </p
