Different Stances on the Future BOPET Market

Recently, China’s BOPET market has been running stably. Negotiations for general-purpose BOPET hovers at RMB 9,810–9,910/mt, up 25.64% y-o-y. SCI interviewed 15 BOPET market players (including 10 BOPET producers, 3 traders and 2 BOPET downstream users). The result is as follows:

Chart Future Expectation on BOPET Market

Most BOPET producers hold the view that the BOEPT price will continue increasing the future. Currently, the inventories are low, and the demand are relatively stable. Meanwhile, end users gradually accepted the high prices. The demand may increase and continue supporting the BOPET price.

Some market players hold the view that both the BOPET feedstock price and the downstream demand are stable. As a result, the BOPET price may be stable in a short run.

Most traders and end users believe the BOPET price may go down. The price spread between the feedstock and BOPET is around RMB 550/mt. As for feedstock, more PTA capacity will be released in Q4, 2017. Some MEG units will be restarted in Q4, 2017. The feedstock prices may go down. Meanwhile, the end users show reluctance to the high prices. As a result, they believe the BOPET price will drop in a short run.

According to SCI, the BOPET price may move sideways in a short run. Negotiations for general-purpose BOPET may hover at RMB 9,810–9,910/mt. Both the feedstock price and downstream demand are stable. It is suggested that the BOPET end users purchase on a need-to basis, in case the feedstock price drop and drag down the BOPET price.