[Chemical Knowledge]：What are the factors affecting the price of polyethylene terephthalate? Detailed analysis, the production of polyethylene terephthalate listed companies

Introduction

Polyethylene terephthalate (PET) is a kind of polymer material widely used in packaging, textile, engineering plastics and other fields. Its price fluctuations not only affect the cost and competitiveness of related industries, but also reflect the changes in the raw material market and macro-economy. This paper will analyze the influence factors of PET price from the aspects of raw material price, supply and demand relationship, production cost, substitute competition, policies and regulations and international trade.

raw material price

The main raw materials of PET include terephthalic acid (PTA) and ethylene glycol (EG). The price of PTA is greatly affected by the fluctuation of oil price, because its production process relies on p-xylene (PX), a by-product of petroleum refining. When the international crude oil price rises, the price of PX and PTA also rises, thus pushing up the production cost of PET. Ethylene glycol is also affected by oil prices and supply and demand, and its price fluctuations are directly transmitted to the price of PET.

supply and demand relationship

The relationship between supply and demand in the market is an important factor affecting the price of PET. When supply exceeds demand, PET prices usually fall; when supply exceeds demand, prices rise. Factors affecting supply and demand include the level of global and regional economic development, changes in demand in downstream industries, and the operating rate and capacity of PET manufacturers. For example, the increase in demand for PET bottles in the food and beverage industry will drive up PET prices, while the decline in demand in the textile industry may lead to a fall in prices.

production cost

Production costs include raw material costs, energy costs, labor costs and environmental costs. Energy costs account for a large proportion of PET production, especially in the case of large fluctuations in energy prices, the impact on PET prices is particularly significant. With the increasingly stringent environmental regulations, environmental costs have gradually become an important factor affecting production costs. Production enterprises need to invest in environmental protection equipment, waste water treatment, etc., these costs will eventually be reflected in the price of PET.

Substitute competition

Alternatives to PET include glass, aluminum, paper, and other plastics (e. g., polypropylene, polyethylene, etc.). Changes in the price and performance of substitutes will affect the market demand and price of PET. For example, if the price of glass or aluminum falls and PET can be replaced in packaging performance, it may lead to a decline in PET demand and lower prices. On the other hand, if substitutes fail to meet PET standards in terms of environmental performance and recycling, the competitiveness of PET will increase and its price may also be supported.

Policies and regulations

The impact of policies and regulations on the PET industry cannot be ignored. The policies of governments on the use, production and recycling of plastics will directly or indirectly affect the price of PET. Strict environmental regulations may lead to higher production costs, and policies that encourage plastic recycling may increase the recycling rate of PET, reduce the demand for new PET, and affect its market price. International trade policies (such as tariffs, import quotas, etc.) will also affect the international market price of PET.

International Trade

As a global commodity, the price of PET is greatly affected by the international trade environment. Trade frictions, tariff barriers and logistics costs between major producing and consuming countries will have an impact on prices. For example, during the Sino-US trade friction, the United States imposed high tariffs on PET imports from China, which caused the price of PET in the US market to rise. In terms of logistics costs, rising shipping costs will increase PET's transportation costs, thereby pushing up its international market price.

Market Expectations

Market expectations are also an important factor affecting PET prices. Market expectations of future supply and demand, policy changes, and the macroeconomic environment can affect the behavior of investors and firms, and thus prices. For example, if the market expects crude oil prices to rise sharply, companies may buy PTA and EG in advance to increase inventories, which in turn will push up the in stock price of PET. Market expectations of tighter environmental policies may also lead companies to invest in environmental protection ahead of time, increasing production costs and affecting PET prices.

Conclusion

PET price fluctuations are the result of a combination of factors. Factors such as raw material prices, supply and demand, production costs, substitute competition, policies and regulations, and international trade interact to affect the market price of PET. Understanding and analyzing these factors is important for manufacturers and downstream users in purchasing and production decisions. Only by fully grasping market information can we find the best coping strategies in price fluctuations, reduce costs and enhance competitiveness.