China’s PET bottle chip plants to keep low run rates in August

31 July 2012 11:20  [Source: ICIS news]

SINGAPORE (ICIS)--China’s polyethylene terephthalate (PET) bottle chip factories will be keeping their operating rates low in August amid weak demand and oversupply, industry sources said on Tuesday.

In view of the weak demand and poor profit, the average operating rate of China’s PET bottle plants was 78.5% capacity in July, with only one plant operating at 100% capacity in July, they said.

Five new lines with a total capacity of 1,600,000 tonnes/year were put into production in the first half of 2012, according to Chemease, an ICIS service in China.

“Supply increased quickly, but demand didn’t catch up with it,” an industry source said. “We had to make our prices lower than the others if we want to promote our sales, which could make the profit worse. We even suffered a loss. Most of us had to decrease our operating rates if we didn’t want to lose more,” the source added.

Most beverage producers have enough PET bottle chips in stock from their previous purchases and hence they will not be looking to purchase more raw material in August, a beverage producer said. This is because the sales of juice drinks are not as good as expected in summer, which is usually the peak demand season for drinks, the producer added.

Some PET bottle chip producers will conduct maintenance shutdowns if sales remain poor, while others will run their plants at low operating rates, the producer said.

By: Sunny Chen

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