China PET Bottle Chip Market Stabilizes with Modest Rebound Amid Supply Cuts and Cost Support

Market Price

• The imported PET brand Wankai is offered in India at different ports and locations. Ex-Bhiwandi, Wankai 801 was quoted at ₹86.75++. Ex-Mundra, Wankai 821 was offered at ₹85.75++, while Wankai WK 801 was at ₹86.25++. 
• Similarly, Ex-Nhavasheva, Wankai WK 801 was also assessed at ₹86.25++. Moving east, Ex-Kolkata, Wankai WK 801 stood higher at ₹89.25++, whereas Ex-Ahmedabad, Wankai 801 was quoted at ₹87.25++.
• PET bottle chip prices in China witnessed weak performance in early to mid-August, pressured by subdued market sentiment. By August 28th, average selling prices stood at USD 840/ton. 
• In the latter half of the month, prices stabilized and rebounded slightly, supported by stronger PTA costs due to unplanned equipment maintenance. However, downstream buyers showed limited acceptance of higher prices, keeping overall gains modest and the market trend volatile.

Demand & Supply

• On the demand side, August marked the peak season for soft drink consumption, which provided some support for PET demand. Large factories gradually reduced bottle cutting operations, trimming inventories and maintaining operating rates near 70.9%.
• On the supply side, leading producers such as Sanfangxiang, China Resources, Yisheng, and Wankai implemented production cuts to mitigate low margins, keeping industry operating rates in check. 
• Despite this, inventory levels remained relatively high, with factories holding around 16.97 days of stock, limiting room for a strong price rebound.

Market News

• Cost Support: Fluctuations in crude oil prices influenced upstream raw materials, offering partial cost support to PET.
• Production Strategy: Major producers continued production curtailments to balance supply against weak demand and low profitability. 
• Processing Fees: Though gross profits remain negative, reduced aggregation costs and adjusted processing fees encouraged producers to hold firm on pricing strategies.

Market Expectations

• Looking into September, the PET bottle chip market is expected to maintain a volatile upward trajectory, with support from raw material costs and ongoing supply-side adjustments. 
• Production cuts are likely to continue depleting inventories, although high stock levels remain a headwind. Overall, prices are projected in the range of USD 840–860/ton, with fluctuations driven by cost movements and inventory dynamics.