A PET producer based in China informed to SSESSMENTS that local offers for PET bottle have reduced between CNY50-100/ton ($7-14/ton) compared to last week. While for export cargoes, the offer has been cut between $10-20/ton. The PET producer has no intention to reduce the price to $900-920/ton on LC at sight, CIF Southeast Asia basis since the impact will not immediately boost demand, the producer prefers to adjust the offer gradually instead of reducing the offers drastically to a low level.
Regarding recycled materials, the producer stated that the competition of recycle-grade PET and virgin grade materials is not high. Therefore with prices between $920-930/ton for Southeast Asian recycled-grade PET, the producer thinks that buyers will prefer to buy the prime-grade because of the price gap between the two is quite thin. In terms of supply, the producer stated to SSESSMENTS that due to China’s ban on scrap imports, inventory for recycled-grades PET has shrunk, and the cost of the production has increased.
Looking ahead, the producer opined to SSESSMENTS regarding the price trends for the PET market will continuously soften in line with PTA and MEG prices.
