BOPET: Cost support market stabilization after the short-term or deposit back possible

BOPET market experienced the first rise after falling and holding steady; Recently, there is some support for enterprise orders, but the downstream demand performance is poor, dragging down the pace of market rise, but the enterprise has been at the cost line, the cost of continued growth momentum may become the key.

Price: a small rise after the stop

Since March, the BOPET market has experienced a one-month decline, with a decline of around 1000 yuan, and a stable price of around 9510 yuan/ton. May witnessed the first rise, from the low price of 9,460 yuan/ton to 9,660 yuan/ton, a total increase of 200 yuan/ton. Although the increase is relatively small, it is still good news for the depressed BOPET market. The price increase was mainly driven by costs, followed by a slight pick-up in orders.

As of May 12, East China 12μ direct melting method ordinary film offer 9810-10310 yuan/ton, evaluation negotiations reference 9510-9810 yuan/ton, compared with the previous trading day 200 yuan/ton higher, compared to the same period last month steady, lower than the same period last year 1250 yuan/ton, slice method price 9800 yuan/ton near, individual large order low; Pu thick price more than 20μ 9410-9610 yuan/ton; Just need replenishment mainly. North China 6μ ordinary film negotiation 13000-14000 yuan/ton; Free base material quotation of 11500 yuan/ton nearby; The price of hot stamping film is 9900-10200 yuan/ton.

Profit: from surplus to loss, BOPET bottom price support is obvious

According to zhuochuang Information statistics, in May, the profit of BOPET industry was near the break-even line, and the maximum loss was 70 yuan/ton, which was the first loss since August 2017. The maximum profitability is less than 300 yuan/ton. By May 12, the profit of BOPET industry has been compressed by 1500 yuan/ton to 100 yuan/ton compared with the year’s high.

On the one hand, the profit compression of BOPET industry comes from the continuous decline of membrane price, on the other hand, from the rise of raw materials. Both sides make reverse adjustments, thus continuously compress corporate profits until they reach the cost line, which obviously supports the bottom price of BOPET market.