SunSirs: Strong Cost Support, China PET Market Prices is Rising

https://www.chemnet.com   Apr 03,2024 SunSirs

According to the analysis system of the commodity market of SunSirs, as of April 2nd, the domestic price of water bottle grade PET is 7,340 RMB/ton, and fiber grade PET is 6,992.5 RMB/ton. Currently, the overall PET raw material market is showing a strong trend, with factory quotations mainly increasing. The focus of market negotiations is on a high level, with an overall increase of 20-50 RMB/ton in price. Downstream demand for replenishment is running, and the mentality of chasing prices is cautious. At present, there is still support on the cost side, and in the short term, the PET market is mainly in a narrow range.

The upward trend in PET raw material prices has driven PET to passively follow suit, and the downstream procurement atmosphere has warmed up. PET factories have raised their prices one after another, narrowing the supply of goods on the market and slightly lacking supply. Currently, the overall market negotiation focus is on a high level, with a positive procurement atmosphere and limited downstream acceptance. The attitude is cautious, and the overall polyester market demand is good. There is an expectation for maintenance on the supply side, and the downstream delivery speed is accelerating. There is a tense situation in the supply side spot, and holders have a reluctance to sell. The mentality of price support is obvious, and it is expected that the short-term upward space is limited.

In terms of cost, the trend of upstream ethylene glycol fluctuates slightly and consolidates strongly, while crude oil has some support. Currently, the domestic supply has narrowed, and downstream demand for essential goods is being purchased. Normal inventory is being reduced, and market buying has rebounded. Prices continue to follow suit. Currently, the overall market is relatively strong and consolidating. Since March, the demand for upstream PTA maintenance has continued to increase, and prices have maintained an upward trend. The price in East China is stable and slightly strong, with a negotiated price of around 6,000 RMB/ton. Currently, purchasing essential goods is stable, and a cautious and wait-and-see attitude is strong. There is still support for crude oil, and it is expected that PTA cost prices will be supported in the short term.

In terms of demand: Currently, the downstream demand for PET is good, and the production and sales situation of enterprises is good. The market is currently in the traditional peak season of gold, silver, and four, with low temperature autumn clothing selling well in spring and good demand for summer clothing. There is no pressure on enterprise inventory, and the overall market negotiation focus is on high prices. In the short term, the main trend is to increase prices, and the overall market expectation is good.

PET analysts from SunSirs believe that the overall polyester market is currently in a traditional peak season, with increasing downstream demand and strong support from upstream costs. It is expected that the PET market will be dominated by a narrow upward trend in the short term, with mainstream prices for PET water bottle grade around 7,300 RMB/ton and fiber grade around 7,000 RMB/ton.

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