Tight supply and hiking price of BDO fuel PBT price – ChinaTexnet.com
Home >> Textile News >> Tight supply and hiking price of BDO fuel PBT price

Tight supply and hiking price of BDO fuel PBT price

2021-07-23 07:55:52 CCFGroup

Price of BDO kept increasing since late-Jun, with bulk resources up to near 22,350yuan/mt from bottom level 16,350yuan/mt. Supply of BDO was limited amid increasing price, and producers and traders were apparently reluctant to sell. It was hard to directly purchase spot BDO even when price was obviously higher than the average level. The purchasing price of feedstock has been at 24,000yuan/mt or 26,000yuan/mt recently in some PBT plants. 

blob.png

Prices of PTA were in range bound while those of BDO hiked. Spot PTA price fluctuated around 4,800-5,150yuan/mt since late-Jun in East China. 

Polymerization cost of PBT has apparently advanced due to spiking BDO price, which has been near 13,700-16,050yuan/mt. 

  Purchasing price of BDO Purchasing price of PTA PBT polymerization cost
Price 1 21000 5100 13710
Price 2 24000 5100 15120
Price 3 26000 5100 16060

Downstream buyers of PBT yarn were replenishing for the winter production. It meant demand for PBT enjoyed support. Coupled with higher cost, price of PBT chip and fibers moved up in some plants. 

blob.png

Trading price of mainstream PBT conventional chip increased to around 18,000-18,500yuan/mt and that of high-viscosity chip rose to around 19,000-19,500yuan/mt. POY one-component filament 50D advanced to near 20,000-21,000yuan/mt, DTY50D climbed up to 24,000-24,500yuan/mt and that of two-component T8 (PBT+PET) products 75 series moved up to 20,000-26,000yuan/mt.

 

Price of PBT chip has rose by above 5,000yuan/mt, that of one-component PBT fiber POY50D advanced to near 3,000yuan/mt, that of DTY surged by near 4,000yuan/mt and that of two-component T8 (PBT+PET) products 75 series edged up by around 1,000yuan/mt. The increment of chip was bigger than that of fibers. 

blob.png

Cash flow of PBT chip was still during positive territory while that of POY was during negative territory. POY producers could be profitable if the chip was purchased before and companies that were accompanied by DTY production saw moderate profit. 

 

Downstream market of PBT filament was during peak season and factories were preparing for the wool-like, Sunday Angora Yarns for covered yarn and sweater. Operating rate of PBT polymerization plants was above 70% and may sustain this level as long as supply of feedstock is not short. 

blob.png

Demand for PTMEG and spandex remained strong. There are around 400kt/year of new PBAT capacity from end-Jul to the end of 2021. In the third quarter, Blue Ridge Tunhe, Xinjiang Xinye, Xinjiang Markor and Sinopec Great Wall will have annual turnaround, totally covering 560kt/year of capacity and accounting for near 26% of the national total. Price of BDO is anticipated to extend higher in Q3 and will push up prices of some PBT. 

Keywords: