The Prospect of Polyester Bottle Chips is Unclear

Macro-economy Prospect is Cloudy

    From June 28th to 29th, global central Banks leading by the European central bank reached saving bank agreement, new loose monetary policy will come on in succession to stimulate economic growth. With the good stimulation, staple commodity market rebounded sharply. In addition, Iran geopolitical crisis was intensified, which caused the investors’ fear towards crude oil supply prospect increasing and brought oil price into drop channel. The good news of international financial condition and crude oil led the polyester products price increase sharply.

    The macro economy is still difficult to revive. The data showed that the unemployment rate in Euro zone increased to 11.1% in May, which recorded the new high. On June the PMI fell below 50 for the first time in three years. In China, the China’s manufacturing activity index of business on June was 56.7% published by Federation of Logistics and Purchasing, National Bureau of Statistics Service Industry Research Center on June 3rd, which increased 1.5% compared to last month. PMI released by HSBC on June 2nd dropped back to 48.2%, which below the critical point in eight consecutive months. In the perspective of breakdown indexes, because of the weak demand, the total quantity of new orders and new export orders all decreased on June, among which the new export orders index fell to 45.8%, which is the lowest since March in 2009. Although the two PMI were different, their conclusions were common that the production and management of small businesses faced many difficulties. On the whole, macroeconomic situation was still unclear, and it is too early to talk about recovery at this time.

 Industrial Chain is Difficult to Break through Low Demand Barriers

    In terms of the current market production and marketing situation, the polyester industry chain was difficult to break through low demand barriers. At present, the industrial chain kept reducing and stopping production. The insiders indicated that the polyester capacity of 870,000 Ton/Year was closed on June and the device producing 1.6 million Ton/Year was going to be closed, among which polyester yarns capacity accounted for 44%, polyester bottle chips accounted for 26%, polyester fiber chips accounted for 22% and polyester staple fiber accounted for 8%. Although the price fluctuated continuously, the low market demand will not be changed. It is estimated that the polyester products price will fluctuate.

 Export Dropped Slightly

    In terms of polyester products import and export situation from January to May, bottle chips exports increased dramatically on March, then fell back slowly. The chips exports fluctuated in low level, and imports level was generally low. Compared with the same period of last year, the exports dropped on May, and the drop rate was about 3.6%.

Conclusion

    Although the bottle chips price went up and good news of macro economy appeared constantly, the market operation rules will limit the market trends and the imbalances of supply and demand will still restrict the polyester bottle chips price.