A Chinese PET producer contacted by SSESSMENTS.COM shared the reasons behind the latest pricing decision for local and export market. This week, the producer decided to maintain a stable offer level for PET Bottle cargoes to the local and export market following limited fluctuations in feedstock prices; which means still considered stable. Besides, the producer is currently busy arranging deliveries and shipments for old orders. Hence, although the current demand is not strong, the producer does not have any sales pressure and is able to maintain the offers firm.
In the domestic market, the buying sentiment is rather weak at the moment. Only a few orders are coming in from domestic buyers, citing that demand for their finished products has yet to pick up and production rate is still quite low of around 60-70% from the normal capacity. For converters who sell to the export market, the number of orders is still considered limited as well. No significant improvement observed although lots of businesses around the globe have started to reopen, SSESSMENTS.COM was told. Particularly for the Southeast Asia market, no inquiries nor bids received from customers in Indonesia, Thailand or the Philippines; the market is basically muted.
In the upcoming week, the producer source told SSESSMENTS.COM that the company probably still entangled with cargoes shipment. As such, sales pressure will remain absent and the producer will likely keep the offers stable. Furthermore, no significant issues were reported at the producer’s PET plant.
