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WeeklySSESSMENTS: China PET Prices W/C November 11

Author: SSESSMENTS




China PET Bottle Prices Slump Under The Weight Of Multiple Factors



  • PET Bottle offers were adjusted down following monomer prices

  • Demand is weak and getting weaker due to cold weather

  • PET supply is ample


SSESSMENTS.COM was informed that China PET Bottle prices slump under the weight of multiple factors. Local offers dropped between CNY100-200/ton ($14.2-28.4/ton) compared to last week. Local producers were forced to make adjustments as the downtrend in PTA and MEG prices continues while supply for the monomers is ample. Besides, supply for PET Bottle in the domestic market is also ample but demand in both domestic and export markets could not support high prices. To the export market, some Chinese PET producers decided to maintain stable offers compared to a week earlier as opined that downward adjustments are meaningless and would not improve sales. Meanwhile, some other applied a decrease of $10/ton compared to the same period. The lowest offers stood at $800/ton on LC at sight, FOB China basis. SSESSMENTS.COM was told that it is possible for deals to be concluded below this level.


As the weather in China turns colder day by day, the demand for PET gradually weakens. Continues decreases in prices have led to bearish buying sentiment. Purchases recorded this week were limited. Buyers in the export market also show reluctance in making procurement. Buyers regarded offers from China as high and chose cargoes of other origins offered at lower levels. In India, buyers prefer to wait until the implementation of the temporary tax on import PET cargoes. On the supply side, PET Bottle supply in China is reported to SSESSMENTS.COM as ample.


Some market players hope that PET prices will not drop further and stabilize at the current level. The others opined to SSESSMENTS.COM that PET prices will continue to move lower. A producer predicts that export offers from Chinese producers will be mostly at $800/ton level next week.








 


Local PET Bottle offers on cash, EXW China basis (including 13% VAT in CNY term, excluding VAT in USD term)

OriginTransaction TypeOffers (CNY/ton)Equivalent in USD/ton
ChinaOffer Given6,350-6,500800-819

Tags: Asia Pacific,China,English,EN PET CHINA WSS,Northeast Asia,Polyethylene Terephthalate (PET),WeeklySSESSMENTS China PET prices,PET prices

Published on November 15, 2019 7:25 PM (GMT+8)
Last Updated on January 14, 2020 7:43 AM (GMT+8)