Bottle grade PET market may maintain soft in June due to large decrease of PTA prices, increasing supply and tepid demand.
On the one hand, PTA prices showed large decline in early June due to decreasing crude oil prices and expected weakening fundamentals, bringing bearish impact on bottle grade PET market.
On the other hand, bottle grade PET supply may increase in June. By June 4, China bottle grade PET production increased to 44,717 tonnes/day, with the new 350,000 tonnes/year unit of Yisheng Dahua Petrochemicals being put into production and the 600,000 t/y unit of China Resources Chemical Materials Technology (Jiangyin) being restarted. Besides, Zhejiang Wankai New Materials may shut down its 650,000 unit since mid-June while there are no maintenance plans for other units. In addition, Sichuan Hanjiang New Material may restart its unit in June.
Bottle Grade PET Production Changes
Source: OilChem
Apart from this, downstream demand may be tepid in June. To be specific, soft drink enterprises may purchase at lows during peak season while the demand from PET sheet field may be tepid with its operating rate maintaining at around 60%.
Written by Wendy Wang, wangfang@oilchem.net
Edited by Navy Liu, liuchuanjun@mysteel.com
