Crude Oil, Monomers, And PET Prices Moved In Sync, Eroded Buying Sentiment In China Market
- Local and export offers captured on a downtrend
- Demand in the local market is better than the export market
- This year’s peak season for PET delayed due to Coronavirus outbreak
Crude oil, monomers, as well as PET prices, moved in sync and eroded buying sentiment in the China market. This week, SSESSMENTS.COM noted that PTA and MEG prices have dropped between CNY300-350/ton ($42-49/ton) from last week’s levels. Following suit, several producers and traders also adjusted down their offers for both local and export markets. In the local market, offers for PET Bottle from several producers went down between CNY100-400/ton ($14-56/ton). To the export market, most producers also trimmed their offers for PET Bottle between $30-40/ton. Meanwhile, export PET Bottle offers via a global trading house lowered between $25-35/ton. All compared to last week’s levels. To date, some deals in the local market successfully concluded at the same level to the initial offers.
Overall, demand for PET Bottle within China domestic market remains subdued this week. Buying sentiment is hampered by the slump in crude oil and monomers prices, which led to a continuous decrease in local PET Bottle prices. As such, most buyers decided to delay the procurement activities and prefer to wait on the sidelines. Traditionally, the peak season for PET in China started in March, but due to Coronavirus, this year’s peak season is delayed. To the export market, the demand is worse than the domestic market. Buyers in the export market are cautious due to the dreads of the Coronavirus outbreak. On the supply side, no significant issues reported to SSESSMENTS.COM at the moment.
Looking ahead, Chinese market players opined to SSESSMENTS.COM that it is rather hard for PET prices to rebound if the crude oil prices are hovering at the current levels. Demand-wise, no signs of significant improvement observed so far.
Tags: Asia Pacific,China,English,EN PET CHINA WSS,Northeast Asia,Polyethylene Terephthalate (PET),WeeklySSESSMENTS China PET prices,PET pricesPublished on March 20, 2020 10:11 PM (GMT+8)
Last Updated on March 20, 2020 11:47 PM (GMT+8)