BOPET Market Climbed in Q1, 2024
In the first quarter, feedstock markets fluctuated at highs, supporting the BOPET price to grow. Affected by higher crude oil prices, the PTA price fluctuated in the range of RMB 5,800-6,100/mt, with the quarterly average price increasing by RMB 50/mt. As for MEG, the price rose for three consecutive quarters, and the quarterly average price rose by RMB 481/mt. The PET chip market performed well, facilitating the BOPET market to go up. As of March 29, the price of 12μ printing film closed at RMB 7,910-8,110/mt, up RMB 300/mt from the beginning of the year. The price also hit a high in the year, up 3.89% from the low point.
In Q2, the factors affecting the BOPET market are still concentrated in cost, supply and demand, but there are many uncertain factors. It is necessary to pay attention to the cost fluctuations caused by the impact of uncertain factors and the impact of the new capacity on the market sentiment.
Supply may continue to increase
According to the incomplete statistics of SCI, 2 or 3 new production lines will be put on the market in the second quarter, and 8 production lines will be restarted. 4 production lines are expected to undergo maintenance. The supply increase is expected to outpace output loss, registering increasing supply pressure. On the demand side, it will be the slow season for the downstream soft packaging industry. Amid the slow consumption, users may be unwilling to stock up in advance, so the support to the BOPET market may be limited.
Feedstock markets may stay high
In the second quarter, the PTA market may experience slight destocking, which may underpin the prices. The overall price of PTA may rise first and then decline, presenting limited fluctuations. The cost support from the PTA market may be passable. The PET chip prices are currently above the cost line and may follow the movement in the PTA market. Overall, the feedstock prices may fluctuate slightly at high levels in the second quarter, backing up the BOPET market. The BOPET market is estimated to inch down amid the supply and demand imbalance, but the decline may be limited due to the support of costs.
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