Chinese market players notified SSESSMENTS.COM on the contrasting demand for PET between the domestic and export market. Despite the stable PTA and MEG prices, a producer decided to increase the offers for PET Bottle in the domestic market between CNY150-200/ton ($21-28/ton) on a weekly comparison supported by satisfactory sales. Sources added that the upward adjustment was following the uptrend in PET Fiber, citing that this grade can be used as materials for face masks.
Although the offers for PET Bottle to export market on FOB basis increased between $5-10/ton from last week, demand from the export market is worse than the local market due to the Coronavirus outbreak outside China. A trader revealed to SSESSMENTS.COM that the buy idea from export buyers is between $20-60/ton lower than the low-end of the price range from the company. As such, done deal from the export market remains scarce.
Regarding the outlook, sources opined to SSESSMENTS.COM that it is not too positive considering some new plants are projected to start production in the first half of 2020. Moreover, crude oil prices are still hovering below $20 per barrel level.
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