Chen Canzhong, Vice General Manager of Wankai New Materials Co., Ltd., delivered his report of How to break through the deadlock on PET bottle chip market as the major capacity expansion force.

The report is divided into three parts.

The first part covers the current status and competitive analysis of the PET bottle chip market. Mr. Chen mainly introduced the industry structure of PET bottle chip, while also explaining that the PET bottle chip capacity has been rapidly increasing in recent years, with a sustained high utilization rate, and the industry concentration is gradually increasing, leading to intensified competition in the industry.

The second part discusses the overcapacity of the industry. Against the backdrop of rapidly expanding capacity, PET bottle chip processing spread have sharply declined, while anti-dumping policies against Chinese materials by various countries have become increasingly severe. Moreover, insufficient domestic demand further exacerbates industry competition.

The third part explores new opportunities, challenges, and ways of thinking. Looking at opportunities, upstream raw materials face overcapacity, which may lead to an increase in the pricing power of polyester sector, and gradual growth in export volume. However, from a challenging perspective, the reduction in processing spread and environmental issues make the competitive trend increasingly severe.