Current Inventory Level Threatens Chinese PET Producers’ Operating Rate
- Local and export offers for PET reported stable to decrease
- Demand in the local and export market remains subdued
- Preparation for Chinese New Year expected to lift demand at the end of November
Chinese PET producers revealed to SSESSMENTS.COM that most buyers in the export market were using the offers for PET Bottle of Taiwan origin as a reference to submit bids. Over the week, offers for PET Bottle in the local and export market were mostly stable. However, a reduction of CNY50/ton ($7/ton) in the local market and $10/ton in the export market, all compared to last week’s level could be seen from some producers. Further explained, Vietnamese buyers placed bids at and below $850/ton on LC at sight, FOB China basis refer to the offers for PET Bottle of Taiwan origin. However, there were no deals concluded at below this level so far.
Demand for PET Bottle in the local and export market reported remains subdued. In the local market, the cold weather has dampened buying appetite. Meanwhile, most of the foreign buyers are only procure on an as-needed basis. SSESSMENTS.COM was told that the inventory level of PET in China’s market is piling up as the total export deals since September were nosedived compared to the previous month. Market talks have it that some producers will cut the operating rate to reduce the inventory level.
Looking ahead, Chinese market players opined that offers for PET would be corrected down between $5-10/ton. While in terms of demand, the preparation for Chinese New Year is expected to lift the demand for PET at the end of November, as stated to SSESSMENTS.COM.
Tags: Asia Pacific,China,English,EN PET CHINA WSS,Northeast Asia,Polyethylene Terephthalate (PET),WeeklySSESSMENTS China PET prices,PET pricesPublished on October 18, 2019 9:28 PM (GMT+8)
Last Updated on January 14, 2020 7:43 AM (GMT+8)