BOPET Market Latest Survey
March BOPET Market Price Change
In March, China’s BOPET market prices were strong at first and then weakened. This month, the highest price of general 12μ BOPET was RMB 10,810/mt, while the low-end price was RMB 10,210/mt. The spread between the highest price and lowest price was RMB 600/mt. Some downstream plants replenished stocks at low prices, and transactions at high prices were sparse.
By March 18, the price of 12μ BOPET in East China was RMB 11,010-11,510/mt, and the negotiation price was RMB 10,210-10,610/mt, unchanged from the previous trading day, unchanged from last month and down RMB 1,900/mt from last year. The price of the general thick film was RMB 9,910-10,510/mt. The negotiation price of 6μ BOPET was RMB 14,200-14,500/mt in North China. The offers for strippable protective film were RMB 10,210-10,610/mt. Offers for hot stamping film were RMB 11,100-11,300/mt.
What about all aspects of the BOPET market except price? SCI conducted research on different links in the market, among which the production link accounted for 62%, the trade link accounted for 17%, and the downstream link accounted for 21%.
BOPET Inventory Survey
According to the survey results, over 80% of the inventory level in each link was at a medium and high level, among which 43% is at medium level, 38% is at a high level, and less than 20% is at a low level. The main reason lies in weak demand and slow sales.
Demand Performance
93% of the sample enterprises indicated that the demand was lower compared with last year. Most producers maintained normal production during the Spring Festival holiday, and newly added capacity was continuously released. The supply was on the increase. However, the downstream demand was tepid as users replenished stocks in advance before the holiday. As for traders, some traders said that only half of the resources on hand were digested. As for downstream industries, most plants stopped production during the holiday and resumed production slowly after the holiday. There was no improvement in demand, so orders seemed hard to increase.
For the existing inventory of enterprises, 43% of enterprises need 10-20 days to consume, 26% of enterprises need more than 20 days, and only 31% of enterprises can consume within 10 days. There are only 10 days left in March. Under the premise that the demand recovery is not ideal and the delivery is not smooth, enterprises will mainly consume existing inventory first. 31% of enterprises have the willingness to replenish after the existing inventory is consumed by the end of the month. It is expected that the overall market will be a little soft in late March, and prices are expected to fall to some extent.
Market Forecast
Entering April, as the company’s inventory is gradually digested, the willingness to replenish will gradually increase. Users will still purchase feedstock based on the standing demand. Intensive replenishment seems hard to appear in the short run. Lacking support from orders, it is difficult for the BOPET price to go upward.
All information provided by SCI is for reference only, which shall not be reproduced without permission.
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