Can The PET Flake Go Up When The Paction Is Boosted?

Since March, the domestic market prices of PET bottle chips have risen sharply, the PTA of polyester raw materials has been sorted out at high level, the ethylene glycol shock has risen, and the cost support for the bottle film market is still strong enough to drive the market price of bottle flakes to rise.

For the future market, can the PET flake market continue to go up?

Cost side concussion finishing

This week, the PTA futures market is in a narrow swing. As the device is about to restart, PTA starts to pick up and supplies will resume.

At present, terminal demand is general, and last week polyester production and sales volume, resulting in lower polyester production and marketing this week, but crude oil prices rise, cost PX high price to PTA support stability, is expected to short-term PTA price shock finishing.

In terms of ethylene glycol, downstream polyester production is high, demand is good, raw material is strong, and cost side has more support.

However, port stocks are high and downstream polyester raw materials inventory is also the same. It is still an important factor in suppressing market growth. Short term ethylene glycol market is expected to be narrowed.

Market supply tends to be tense

At present, the spot market of bottle grade PET is tending to be tense.

After this round of market surging, new orders for bottle makers have increased substantially. Many manufacturers have begun to take orders for 4-5 months, and spot resources have become tense. Until April, the spot market will remain tight.

But after April, with the set of two sets of 1 million 200 thousand tons of equipment to resume shipment, the market supply will increase significantly, which is bound to have a certain impact on the market.

To sum up, the current PET market cost support is not good, raw material trend shocks, market supply and demand fundamentals continue to improve, and the industry has more confidence in the market outlook, lower price intention.

Short term bottle grade PET market or will be warm and volatile.

(source: today's plastic price, Jin Lianchuang)