BOPET Market Fell from Highs
This month, the BOPET price fell from highs with the supply increasing. As of November 26, the average market price of 12μ BOPET was RMB 11,740/mt, down RMB 196/mt or 1.65% from last month and down RMB 1,341/mt or 10.25% from last year.
1. BOPET Price Trend
In November, BOPET market prices fell from highs. In H2 November, some users placed orders based on the standing demand. This month, feedstock prices lost ground. Some enterprises, which lowered the operating rate or conducted maintenance, resumed normal production. The newly added production lines were put into use successively, and supply was expected to increase. The supply tightness was alleviated somewhat. Downstream users’ buying appetites weakened as the demand was weak. The overall trading atmosphere was tepid. Only some users replenished stocks at the price of RMB 10,810-11,310/mt to cover the rigid demand.
According to SCI, as of November 26, the offers for 12μ general-purpose BOPET in East China were about RMB 11,310-11,810/mt, and the negotiation price was about RMB 11,010-11,310/mt, down RMB 850/mt from last month and down RMB 2,550/mt from last year. The monthly average price was about RMB 11,740/mt, down RMB 196/mt or 1.65% from last month and down RMB 1,341/mt or 10.25% from last year.
Other price references: Offers for 20μ above BOPET were about RMB 10,000-10,500/mt. The negotiation prices of 6μ BOPET were about RMB 18,500/mt. The offer for substrate, which is used for release film and protective film, was RMB 12,500/mt. Offers for hot stamping film were about RMB 11,500-11,700/mt. The price for 12μ BOPET in the retail market was about RMB 11,700-12,800/mt.
2. China BOPET Industry Operation Analysis
According to the latest data, China’s BOPET industry operating rate was estimated to ramp up in November. Producers who lowered the operating rate or conducted maintenance in the previous stage gradually recovered normal production. It was estimated that China’s BOPET monthly capacity was about 377.7kt in November. The operating rate of China’s BOPET industry was estimated at 77.14%, up 10.20% from last month and down 3.44% from last year. One production line in Jiangsu went into production in the month. The output was estimated at 291.4kt in November, up 32.9kt from last month.
In November, feedstock prices kept going down amid the cost pressure. There were limited new orders at BOPET plants, so BOPET plants were not keen to replenish stocks. The feedstock inventory was estimated at 9.54 days’ level. As for the finished product, the inventory was about 14.9kt by the end of November.
3. BOPET Market Detailed Operation Data
In November, the operating rate of the BOPET industry ramped up with the restart of units. The supply increased in the month, while the downstream demand was sluggish. The inventory inched up, but it was still at a low level.
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