PET bottle chip plants moderately destocked

In terms of purchasing cycle, in Q1, on Spring Festival holiday impact, downstream players mainly built PET stock in Jan and Mar. In Q2, market price fluctuated more frequently, in late Apr, end May and Jun, factories saw intensive restocking activities. Since the beginning of Q3 and early Q4, polyester feedstock changed little, while PET bottle chip corrected down, cash flow squeezed to breakeven line, this has caused large scale output cutback, but the price fall also led to turnover expansion. Till end Sep, PET bottle chip plants moderately destocked.

Note: the thickness of the bar represents large downstream plants purchasing density