Chinese PET Market Suffers From Seasonal Slowdown
- Local and export prices recorded stable to increase
- Demand stayed on a subtle trend
- Local producers reduced operating rates
Market sources revealed to SSESSMENTS.COM that the Chinese PET Bottle market is suffering from a seasonal slowdown. For the week commencing December 2, local PET Bottle offers in China were mostly stable from a week earlier in line with monomer costs. To the export market, export PET Bottle offers from a producer surfaced with an increase of $10/ton compared to last week, captured at $830/ton on LC at sight, CIF China Main Port basis. In response, most customers gave cold shoulders as the prices were deemed too high. However, the producer is willing to give a discount of $5/ton for certain regular customers.
In general, demand for PET Bottle in China has been gradually weakening as cold season checks in. Over the week, the number of inquiries remains limited due to seasonal slowdown during the winter season. For the end-products sector, demand for bottled drinks remains slow. Overall, PET Bottle sales to the export market continue to slump. Most producers in China reduced operating rates to around 60% of the normal capacity as the profit margin is getting thinner. On the supply side, no significant issues reported in the domestic and export market, sources disclosed to SSESSMENTS.COM.
Looking ahead, the majority of Chinese market players expressed an opinion to SSESSMENTS.COM that there would be no room for PET prices to fluctuate as the current prices seem to have bottomed out. Demand-wise, some sources opined that the upcoming Chinese New Year celebration would have a limited impact on the market.
Tags: Asia Pacific,China,English,EN PET CHINA WSS,Northeast Asia,Polyethylene Terephthalate (PET),WeeklySSESSMENTS China PET prices,PET pricesPublished on December 6, 2019 9:51 PM (GMT+8)
Last Updated on January 14, 2020 7:43 AM (GMT+8)