BOPET Industry Operating Rate Inched Down
This month, the BOPET price rose first and then dropped. As of June 28, the average market price of 12μ BOPET was RMB 9,802/mt, up RMB 152/mt or 1.58% from last month and down RMB 491/mt or 4.77% from last year.
1. BOPET Price Trend
In June, BOPET market prices rose first and then went down, and trades turned weak after the replenishment based on the standing demand. In H1 June, the feedstock cost increased more than expected, leading to extended losses at BOPET plants. Producers were unwilling to lower the price continuously. In the meantime, downstream players’ sentiment improved, impacted by the rising feedstock prices. The trading volume improved amid the lifting buying appetites. Prices of BOPET followed the uptrend in the feedstock market. This month, the mainstream dealing price of 12μ printing film in East China was around RMB 9,510/mt. There were limited trades at high-end prices. In H2 June, feedstock prices fell from highs, and downstream players gradually showed resistance to the high prices. BOPET prices moved down under the pressure. Though the maintenance increased, the inventory pressure can not be eased in the short run.
According to SCI, as of June 28, the offers for 12μ general-purpose BOPET in East China were about RMB 10,010-10,510/mt, and the negotiation price was about RMB 9,410-9,710/mt, down RMB 200/mt from last month and down RMB 700/mt from last year. The monthly average price was about RMB 9,802/mt, up RMB 152/mt or 1.58% from last month.
Other price references: Offers for 20μ above BOPET were about RMB 9,310-9,610/mt. The negotiation prices of 6μ BOPET were about RMB 13,000-14,000/mt. The offer for substrate, which is used for release film and protective film, was RMB 11,500/mt. Offers for hot stamping film were about RMB 9,900-10,200/mt.
2. China BOPET Industry Operation Analysis
According to the research data of SCI, the operating rate of China’s BOPET industry was estimated at 70.02%, down 2.98% from last month and down 7.61% from last year. The output was estimated at 300.4kt in May, down 6.30% from last month.
The BOPET price rose first and then declined in June. Orders at BOPET plants improved, and the increase in early June exceeded expectations. In the month, the demand inched down, but the increasing maintenance in H2 June eased the inventory pressure to some extent. Overall, the inventory of finished BOPET products dropped, which was around 100.6kt in late June, down 11.9kt or 10.58% from last month.
3. BOPET Market Detailed Operation Data
In June, 21 production lines were shut down for maintenance, which alleviated the inventory pressure to some extent. The inventory went down.
In June, the BOPET profits were compressed. The international crude oil price fluctuated widely, and feedstock PTA and MEG prices rose first and fell back then.
By June 28, the negotiation price of PTA in East China was RMB 6,915/mt, up RMB 60/mt from last month. The negotiation price of MEG spot resources in Zhangjiagang was RMB 4,420/mt, down RMB 375/mt from last month. The negotiation prices of the bright chip in Jiangsu and Zhejiang were RMB 7,825/mt, down RMB 75/mt from last month.
In June, the BOPET mainstream negotiation price moved up first and then fell back. By June 28, the negotiation prices of general-purpose BOPET in East China were about RMB 10,010-10,510/mt, and the negotiation prices were about RMB 9,410-9,710/mt, down RMB 200/mt from last month. On the whole, the losses at BOPET enterprises were in the range of RMB 10-450/mt, and the average profit was RMB -238/mt, down RMB 328/mt from last month.
According to the order situation of 13 general-purpose film producers researched by SCI, as of late June, the average order level for general-purpose BOPET was 9.57days, which was 0.64 days lower than last month and 19.94 days lower than the same month last year.
4. BOPET Market Outlook
In the next three months, 4-5 production lines will still be put into use, so the supply is predicted to increase further. The expected supply increase may put a damper on the prices. On the demand side, the slack season will gradually transit to the peak season, so downstream plants are expected to replenish stocks intensively. However, as the spot resources are ample in circulation, the replenishment may be limited. As for orders, the order level at producers may stay low for a long time. Low-priced orders may increase, which may extend the order level at some plants. It is predicted that the BOPET market will be soft in July. SCI predicts that the prices of general-purpose 12μ BOPET in East China will be RMB 9,510-10,010/mt, and the negotiation price will be RMB 9,010-9,510/mt. From August to September, the price of BOPET may mount up. If the order increases during this period, it may facilitate the price of BOPET to rebound.
All information provided by SCI is for reference only, which shall not be reproduced without permission.
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