China BOPET Market Stabilized after Declines in Apr
1. Market Price
2. Market Review
In April, BOPET market prices stabilized after declines. In H2 April, there was more replenishment based on the standing demand. Feedstock prices fluctuated upward, but the downstream demand for BOPET was tepid. Besides, the inventory at producers kept increasing. In the context of passable profits, producers lowered the price to attract more orders in H1 April. The mainstream dealing prices of 12μ BOPET were about RMB 9,310-9,510/mt in East China, and those of 20μ and above thick film were around RMB 9,110-9,510/mt. Orders at BOPET plants increased after the intensive stockpiling of downstream plants. In addition, the profit level dropped near the cost line. In H2 April, China’s BOPET market stabilized.
According to SCI, as of April 27, the offers for 12μ general-purpose BOPET in East China were about RMB 9,510-10,210/mt, and the negotiation price was about RMB 9,310-9,710/mt, down RMB 850/mt from last month and down RMB 1,450/mt from last year. The monthly average price was about RMB 9,647/mt, down RMB 789/mt or 7.56% from last month and down RMB 1,656/mt or 14.65% from last year.
3. Market Forecast
In the next three months, 5 production lines will still be put into use, so the supply is predicted to increase. The expected supply increase may put a damper on the prices. On the demand side, downstream plants will replenish stocks based on the standing demand and purchase feedstock in small amounts. As for orders, the order level at producers may stay low for a long time, which cannot lend obvious support to the BOPET price. It is predicted that the BOPET market will be soft in May. 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 June to July, the price of BOPET may fluctuate at lows. 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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