--- title: "Open Source Securities: The supply and demand pattern of the polyester bottle chip industry is improving, and profitability is expected to rebound from the bottom" type: "News" locale: "en" url: "https://longbridge.com/en/news/249321556.md" description: "KaiYuan Securities released a research report indicating that the supply and demand pattern in the polyester bottle chip industry is improving, and profitability is expected to rebound. As the industry's expansion cycle approaches its end and the effects of production cuts become evident, bottle chip prices have risen from 150-170 yuan/ton to over 400 yuan/ton. It is expected that the demand for polyester bottle chips will grow steadily, benefiting companies such as Wankai and SFX" datetime: "2025-07-21T02:01:03.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/249321556.md) - [en](https://longbridge.com/en/news/249321556.md) - [zh-HK](https://longbridge.com/zh-HK/news/249321556.md) generator: "portal-rs" --- # Open Source Securities: The supply and demand pattern of the polyester bottle chip industry is improving, and profitability is expected to rebound from the bottom According to Zhitong Finance APP, Kaiyuan Securities released a research report stating that as the industry's expansion cycle comes to an end, coupled with the effects of joint production cuts, the pattern of the polyester bottle chip industry continues to improve, with the price difference rising from 150-170 yuan/ton in late June to over 400 yuan/ton. Beneficiaries include Wankai (301216.SZ), SFX (600370.SH), China Resources Materials (301090.SZ), Hengyi Petrochemical (000703.SZ), and Rongsheng Petrochemical (002493.SZ). ## Key points from Kaiyuan Securities are as follows: **Demand for polyester bottle chips remains robust, global supply-demand mismatch triggered the previous round (2020-2022) of bottle chip upcycle** Global demand for polyester bottle chips shows a steady growth trend. According to CCF data, from 2015 to 2024, global demand for polyester bottle chips increased from 20.04 million tons to 34.35 million tons, with a CAGR of 6.2%. In 2020, during the pandemic, the demand for medical packaging and takeout containers surged, significantly increasing the consumption of polyester bottle chips in the sheet material sector. After the pandemic, the domestic economy entered a recovery track, with bottle chip demand steadily rising, and downstream entering a replenishment cycle. Coupled with the "plastic ban" proposed in 2020, domestic demand for polyester bottle chips in 2020 increased by 28.9% compared to 2019. On the export side, in 2021, the relaxation of pandemic control overseas led to a rebound in downstream consumption and a surge in replenishment demand, with China's bottle chip export volume rising significantly by 27% compared to 2020. In 2022, the Russia-Ukraine conflict caused energy costs in Europe to rise, leading to an increase in local bottle chip prices in Europe. China's exports of bottle chips to Europe grew, and with sanctions on Russia, China became an important source of bottle chip imports for Russia, with export volume increasing by 36% compared to 2021. On the supply side, during the four years from 2018 to 2021, China's polyester bottle chips served as a backbone of global supply, with almost no capacity expansion. The rebound in global demand after the pandemic in 2021 and the slow recovery of production capacity created a supply-demand mismatch, pushing the price difference up to around 2000 yuan/ton. The global supply-demand mismatch triggered the previous round of the bottle chip upcycle. **The current expansion cycle is coming to an end, with long-term improvement expectations for the industry and profitability expected to rise from the bottom** While industry profitability has significantly improved, domestic bottle chip leaders are also gradually implementing expansion plans. After 2022, the bottle chip industry entered a capacity expansion period, increasing China's share of global bottle chip capacity from 33.35% in 2021 to 47.94% in 2024, with China currently holding the world's largest bottle chip capacity. The rapid expansion of capacity has also led to a situation where supply exceeds demand, with domestic bottle chip capacity doubling compared to 2018, reaching the industry's cyclical low, resulting in losses across the industry. Currently, the main producers of bottle chips in China include Yisheng (5.9 million tons), SFX (5 million tons), China Resources Materials (3.3 million tons), and Wankai (3 million tons), with a CR4 of about 79%. In the second half of 2025, only new capacities of 600,000 tons from Fuhai and 100,000 tons from Sichuan Wuliangye will remain, marking the end of the industry's capacity expansion. The firm believes that in the long run, the outlook for the bottle chip industry is positive, and the industry's low point may have passed, with expectations for the bottle chip industry to welcome a rise from the bottom **Recent industry joint production cuts are underway, and self-regulatory behavior in the industry is expected to further promote the upward repair of price spreads.** The industry's joint production cuts to "counter involution" are in progress, which will promote the upward repair of price spreads. Since June 2025, several major polyester bottle chip manufacturers have successively carried out equipment maintenance, and the domestic polyester bottle chip production capacity utilization has dropped to around 80%, with good execution results in the industry. At the same time, market feedback has been relatively rapid, with the domestic bottle chip price spread rebounding from around 150-170 yuan/ton in late June to above 400 yuan/ton. The firm believes that as the industry's self-regulatory behavior to "counter involution" continues, the industry price spread and profitability are expected to continue to repair, with related companies' profitability and valuation levels expected to recover simultaneously. **Risk Warning:** Significant fluctuations in crude oil prices, shrinking downstream demand, and impacts from trade protection policies ### Related Stocks - [301216.CN](https://longbridge.com/en/quote/301216.CN.md) - [600370.CN](https://longbridge.com/en/quote/600370.CN.md) ## Related News & Research - [Sentinel Net Lease Announces Final Closing of Sentinel Opportunity Fund I](https://longbridge.com/en/news/296631028.md) - [Cocoa Prices Fall on Rising Nigerian Cocoa Exports](https://longbridge.com/en/news/296637826.md) - [Allreal says H1 2026 operating earnings rise 20.8% on property sales gains and lower finance costs](https://longbridge.com/en/news/296733904.md) - [JL Mag Rare-Earth seeks shareholder nod to shift USD 15 million of convertible bond proceeds from H-share buybacks to debt repayment, raw materials](https://longbridge.com/en/news/296493279.md) - [AM Best Affirms Credit Ratings of Jubilee General Insurance Company Limited](https://longbridge.com/en/news/296638436.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**