China PET Prices Strolling In The Same Path With Monomers Cost Following Coronavirus Outbreak
- Local and export PET offers captured on a downtrend
- Demand remains sluggish on the back of Coronavirus outbreak
- Zhejiang Wankai running at 70% from normal capacity, in short of feedstock supply
China PET prices are strolling in the same path with monomers cost following the Coronavirus outbreak in the country, SSESSMENTS.COM noted. For the week commencing February 3, offers for PET Bottle from local producers captured between CNY200-300/ton ($28-43/ton) lower compared to the offer level before Lunar New Year holiday. To the export market, most offers for PET Bottle from Chinese producers went down between $30-50/ton as compared to the same period. The price decrements were mainly caused by the softer monomers cost owing to the outbreak of the Coronavirus. At the same time, one of the local PET producers attempted to maintain offers stable from the level before the holiday to test market response as the producer thinks the previous level, at $840/ton on LC at sight, FOB China basis is still workable. However, market responses remain cold.
Demand-wise, SSESSMENTS.COM was told that sales for PET resins this week reported sluggish on the back of the Coronavirus issue. Additionally, many containers from China to Southeast Asian countries ports will be quarantined for 14 days and could only be picked when there is no problem observed; hence, buying sentiment was dampened. On the supply side, Zhejiang Wankai reported running out of feedstock supply as the ports do not allow unloading materials following the Coronavirus outbreak. At the moment, the company’s 1.2 million tons/year PET plant is running at 70% from the normal capacity. If the ports continue to prohibit unloading of materials, the company may have to cut the operating rate at its PET plant further.
Looking ahead, Chinese market players opined to SSESSMENTS.COM that PET prices would likely to move further down if the Coronavirus could not be controlled shortly. Demand-wise, buying activities are expected to remain quiet in the upcoming weeks.
Tags: Asia Pacific,China,English,EN PET CHINA WSS,Northeast Asia,Polyethylene Terephthalate (PET),WeeklySSESSMENTS China PET prices,PET pricesPublished on February 7, 2020 8:06 PM (GMT+8)
Last Updated on February 7, 2020 8:49 PM (GMT+8)