Bottle grade PET fundamentals may be stalemated in Q4.
On the one hand, demand for bottle grade PET may be relatively weak in Q4. Specifically speaking, soft drink industry will enter into slack season since Q4 and the demand from this industry hit a new low since November on maintenance of most units. In addition, peak production season of oil and fat industry from November to December will put small impact on bottle grade PET industry in view of its limited consumption. Besides, most PET sheet factories will keep their operation rate at a low level and demand from this field may be weak.
Monthly Output of China Soft Drink Industry
Source: National Bureau of Statistics
On the other hand, bottle grade PET supply may decrease on weak demand and large decline of processing fees.
Bottle Grade PET Output
Source: OilChem
Written by Wendy Wang, wangfang@oilchem.net
Edited by Navy Liu, liuchuanjun@mysteel.com