BOPET Prices Rebounded Slightly on Healthy Orders
In early August, the demand for BOPET was released, and the market prices reversed the falling trend. However, after the price increasing by RMB 200/mt, the dealing prices turned weak again. The market entered stagnation.
BOPET prices saw a small rebound
Entering August, the BOPET market ushered in the first rise in nearly two months. The price of general 12μ BOPET rose from RMB 8,210/mt to RMB 8,410/mt, up RMB 200/mt or 2.44% in total.
As of August 4, the negotiation prices for general-purpose 12μ BOPET in East China were RMB 8,410-8,610/mt, stable from the previous trading day, down RMB 950/mt from last month, and down RMB 2,450/mt from last year. Offers for 20μ-75μ general-purpose thick film were about RMB 8,360-8,510/mt. The negotiation price of 6μ BOPET in North China was around RMB 11,500-11,800/mt. The offer for substrate, which is used for release film and protective film, was around RMB 10,500/mt. Offers for hot stamping film were about RMB 8,800-9,200/mt.
Orders improved lending support to the BOPET price
According to the order situation of 14 general-purpose film producers researched by SCI, as of August 4, the average order level for general-purpose BOPET was 15.86 days, which was 9.36 days higher than last July and 7.67 days lower than the same month last year.
The prolonged order level was mainly attributed to the bottom haunting of users. On the one hand, feedstock prices inched up after declines. On the other hand, the BOPET price touched annual lows and the profits turned into losses. It will be the peak demand season in Q3, which may further push up the order level.
Focus on the demand recovery
The current order is around 15 days, which will underpin the BOPET price in the short run. On the cost side, crude oil prices will face downward risks. In addition, prices of PTA and PET chip may be weak without the support of the demand. On the supply side, 3 production lines will be restarted, and 2 production lines will go into production. The supply is expected to increase by 350mt/day. Besides, the inventory pressure is high as the market resources in circulation are ample. As for demand, the operating rate at downstream plants is in the range of 30%-50%. In theory, the peak demand season is coming, but the macro environment outlook is not optimistic. It will take time for the demand to recover. Overall, the BOPET market will be immersed in the wait-and-see atmosphere in the short run.
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