Entering Q3, the price of general-purpose 2μ BOPET in East China went up steadily, rising from RMB 9,810/mt to RMB 10,610/mt, up RMB 800/mt or 8.15%.
Cost lent support to the BOPET price
Oil prices drove the upward trend in the feedstock PTA and MEG markets. The cost from PTA and MEG rose from RMB 5,743/mt to RMB 6,430/mt, up RMB 687/mt or 11.96%, which supported the PET chip price to extend gains.
Specifically, crude oil prices rose to a new high at $75.25/bbl due to the continued decline in inventories and the different opinions in the previous OPEC meeting. Driven by cost, the PTA and MEG prices went up steadily. In H2 July, the price rose to a high level due to a typhoon that closed the Yangtze River. Prices of PTA increased by 10.79% from that in late June, and those of MEG rose by 14.98%. PET chip prices went up by 8.20%, driven up by the cost. The cost side lent strong support to the BOPET market.
Orders supported the BOPET price
The overall order volume for general-purpose BOPET was 100-130kt after receiving orders in batches three times in Q3. The order level at plants was in the range of 20-50 days, giving increasing support to the BOPET price.
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