why PET bottle chip factories are running at a deficit but not stopping production

Aug 25, 2023

Recently, many people have been asking why PET bottle chip factories are running at a deficit but not stopping production.


First of all, when a polyester factory chooses to reduce production, except for annual maintenance, it is generally a reluctant decision made after considering factors such as efficiency, inventory, and demand trends. It is a buffering measure. Short-term compression of processing spread does not mean the factory will completely stop production or reduce output, especially considering that a decrease in operating rate will correspondingly increase unit costs.

China domestic styrene prices posted aggressive increase
The average physical inventory of PET bottle chip factories is not high

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