Polyester operating rates are currently at high levels

Sep 04, 2023

Overseas vessel arrivals will still be concentrated in late July. In addition to the impact of cargo transfers between ports, the sustainability of offtake will be especially important. After experiencing continuous inventory declines in the second quarter and significant tightening of inventories in the midstream, recent offtake from coal chemical producers has been slightly tight, providing moderate support for port offtake. Recently, some traders' vessel arrivals have been slower due to limited tank capacity, with moderated restocking actions ahead of delivery period. Spot differentials have strengthened slightly in recent days. Going forward, pay close attention to the sustainability of offtake.

Looking at the demand side, polyester operating rates are currently at high levels, providing strong support for MEG, and polyester product inventories are controllable with the industrial chain performing relatively well. Recently, there have been expectations of some PET bottle chip plants reducing operating rates, but this has not been heard from other enterprises. Going forward, pay close attention to changes in polyester operating rates.

Tank capacity in some terminals has become tight
The Chinese economy will maintain its stable and positive trend

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