SunSirs: China Domestic PET Bottle Film Industry is Facing a Situation of Overcapacity

In the first half of the year, the total production of PET bottle flakes in China reached about 7.47 million tons, but the domestic market demand only remained at around 4.37 million tons. Although it is expected that 2.85 million tons of products can be digested through export channels, thereby easing some pressure, there is still about 250,000 tons of actual excess capacity left in the industry. Although this number may seem small on the surface, combined with the industry's average operating rate of less than 85% in the first half of the year, it means that nearly 2.5 million tons of production capacity have not been fully utilized.

In this context, PET bottle chip factories have taken proactive measures to adjust their production strategies in response to market changes. Several well-known enterprises, including Hainan Yisheng (750,000 tons), Zhejiang Wankai (650,000 tons), China Resources Jiangyin (600,000 tons), and Anyang Chemical (300,000 tons), have taken the lead in announcing production shutdown plans to reduce excess capacity and optimize resource allocation. In addition, leading companies in the industry such as China Resources, Sanfangxiang, Far East, and Sinopec Yizheng have also released signals that they will further implement shutdown or production line renovation projects.

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