After the last few weeks stick out in bearish tone, China PET market eventually gained momentum from manifold factors to shine, SSESSMENTS.COM noted. This week, Chinese producers reported that they have been adjusting up local and export offers as supported by the firmer crude oil prices and followed by an increase in monomer prices. PTA and MEG prices hiked between CNY400-500/ton ($56-70/ton). To catch up, local offers for PET Bottle from several Chinese producers raised between CNY50-300/ton ($7-42/ton). Likewise, Chinese producers’ offers for PET Bottle to the export market emerged with an upward adjustment of between $5-40/ton. All price changes are on a weekly interval. So far, deals in the local market were successfully concluded at the initial offer levels. Meanwhile, some deals to the export market concluded at $90/ton lower than the initial offers available a fortnight ago.
On the contrary, some Vietnamese traders adjusted down their offers for import China PET Bottle cargoes by $20/ton from last week’s level to gain acceptance from buyers. Despite the reduction, most buyers still bid at below the initial offer levels. However, the bids were eventually rejected as the supplier has no supply left amid the improvement in demand in the local market, SSESSMENTS.COM was told.
Speaking of demand, sentiment in China's domestic market has been significantly improved as the uptrend in prices stimulates buying appetite. Almost similar, demand in the export market also slightly stimulated by the uptrend in prices, yet the Coronavirus pandemic still heavily weighed the market. Particularly in the Indonesia market, SSESSMENTS.COM informed that most buyers are unwilling to buy overseas cargoes due to local currency depreciation. While in Thailand, the local prices are more competitive.
In the days to come, the majority of market players contacted by SSESSMENTS.COM believe that the uptrend in the domestic China market will sustain considering the expectation of a rebound in crude oil prices. Even some producers hinted that the upcoming offers to the export market will be adjusted further up by around $10-20/ton.
