Sources: Additional PTA, MEG Plants To Determine PET Price Movement In China
- Local and export offers were on a downtrend
- Demand remains on a soft note
- PTA and MEG price is expected to move further down
Market sources in China voiced out to SSESSMENTS.COM that additional PTA and MEG plants in China would determine PET price movement in the near future. Following a reduction in PTA and MEG prices, local and export PET Bottle offers stayed on the downward trajectory this week. On a weekly basis, PTA and MEG prices declined by CNY100/ton ($14/ton). In the domestic market, current local offers were between CNY50-300/ton ($7-43/ton) lower as compared to last week’s level. To the export market, the latest offers from the producers surfaced with a reduction of between $10-20/ton from a week earlier. Done deals remain limited as most buyers were hesitant to place bids. Some producers claimed facing difficulties in selling export cargoes to India, Southeast Asia, and Europe due to competitive local prices in these regions.
In general, PET demand in China remains on a soft note, as most buyers have sufficient inventory on hand and prefer to keep tabs on market development in anticipation of lower prices in the near term. On the production front, Xin Feng Ming Group Co. Ltd has started production activities at the new PTA plant located in Pinghu, Zhejiang province, China. The plant has two production trains with a capacity of 1.1 million tons/year each. SSESSMENTS.COM was informed that one of the production trains had been started up and the paraxylene (PX) had been supplied to the plant starting from October 29. On the supply side, the inventory level for PET in China remains sufficient at the moment.
Looking ahead, market players in China expressed an opinion to SSESSMENTS.COM that PET price will remain soft in the upcoming weeks. As the PTA and MEG prices are expected to decrease further following the start-ups of PTA and MEG plants in the country, the PET price will follow-suit.
Tags: Asia Pacific,China,English,EN PET CHINA WSS,Northeast Asia,Polyethylene Terephthalate (PET),WeeklySSESSMENTS China PET prices,PET pricesPublished on November 1, 2019 9:27 PM (GMT+8)
Last Updated on January 14, 2020 7:43 AM (GMT+8)