PET Price Trend In China Prolonged, Market Players Doubt It Will Sustain
- Local and export PET Bottle offers increased
- Demand remains slow in general
- Chinese market participants believe the current price trend would not sustain
The uptrend of PET prices in the China market last week is prolonged until the week commencing December 16, however, market players doubt the price trend would sustain. Due to the increases in MEG price, offers for local and export PET has increased between CNY100-200/ton ($14.2-28.5/ton) and $10-20/ton respectively on a weekly comparison. The total increase in MEG prices from last week until December 18 captured between CNY500-600/ton ($71.3-85.6/ton). The low coastal China inventory, reduced operating rate, and the positive movement between China and the U.S gave some support for MEG prices to soar. However, on December 19 SSESSMENTS.COM noted that MEG prices declined between CNY100-150/ton ($14.2-21.4/ton).
The overall demand for PET Bottle remains on the soft note. However, in China’s local market, fundamental needs persist as some converters start to prepare for Lunar New Year. While to the export market, Chinese PET producers stated to SSESSMENTS.COM that sales to Africa and Southeast Asia market have nose-dived. The availability of European cargoes offered at a lower price in Africa, buyers’ stance to procure local materials, and the holiday season have dampened demand in the export market. On the supply front, no significant issues reported by Chinese market players.
Looking ahead, considering the downward movement in MEG prices, Chinese market players believe that PET prices would decrease in the near term. A Chinese PET producer even revealed to SSESSMENTS.COM that the producer is planning to trim offers to the export market by $5/ton on December 20.
Tags: Asia Pacific,China,English,EN PET CHINA WSS,Northeast Asia,Polyethylene Terephthalate (PET),WeeklySSESSMENTS China PET prices,PET pricesPublished on December 20, 2019 7:15 PM (GMT+8)
Last Updated on January 14, 2020 7:43 AM (GMT+8)