Analysis on Recent Rising BOPET Market Price

As of July 3, the offer of 12μ general-purpose BOPET in East China was RMB 13,010/mt, some of which was RMB 12,510/mt, and the negotiation offer was at RMB 12,510-12,710/mt, with barely any deals. The offer of 6μ BOPET in North China was around RMB 16,500-17,000/mt, with the negotiation price at RMB 16,300/mt. The price for substrate, which is used for release film and protective film, fluctuated, with the negotiation price fluctuating at RMB 12,800-13,300/mt.

According to statistics from SCI, in H1 June, the BOPET and feedstock prices rebounded after decreasing to the low level. The PTA spot price increased to RMB 6,885/mt from RMB 5,405/mt, up RMB 1,480/mt or 27.38% M-O-M. The PET chip price increased to RMB 8,175/mt from RMB 6,650/mt, up RMB 1,525/mt or 22.93% M-O-M. The BOPET price increased by RMB 2,000/mt, up 18.85% M-O-M. Supported by the orders, the BOPET enterprises started to raise their prices greatly.

SCI believes that the BOPET market price will fluctuate following the feedstock price, with few chances to decrease. First, the oil prices will hover at highs, and the PTA spot supply will remain tight. Some units will still be under maintenance, but with the decreasing futures price, it will be hard for the price to increase greatly. The PET chip inventory will be relatively low, with tight supply, so the price will be stable after increasing. Second, the orders at BOPET enterprises will increase, and the support from the orders will be strong. If the feedstock price keeps increasing, the BOPET enterprises may raise their offers. Third, after this increase, the downstream players will finish their basic purchases, and some players may stay on the sideline. Meanwhile, with the slow consumption of the downstream resources, the capital pressure on customers will mount, so the deals will be sparse. Thus, the BOPET market will be stable-to-rising, but attention should be paid to the feedstock futures. 

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