Sources from Chinese PET producers informed SSESSMENTS.COM on the adjustment for local and export PET Bottle offers. Following the drop between CNY150-200/ton ($21-28/ton) in MEG and PTA prices, local PET Bottle offers from the producers decreased between CNY200-250/ton ($28-35/ton) compared to last week’s levels. While for the export market, PET Bottle offers declined between $20-40/ton compared to the same period. However, the offers from one of the producers are not firm, citing that the deals might be concluded at $10/ton lower than the initial offers. Despite the reduction, the producer shares concern on the difficulties in closing deals due to the intensified Coronavirus outbreak globally.
Buying sentiment remains flat and buyers prefer to wait on the sidelines due to the slow demand coupled with the expectation for lower PET prices. Likewise, the export market is quiet. Shipment to the Philippines and India market is disrupted due to the lockdown. In the production sector, the producers’ PET plants are still running at full capacity. However, a producer might reduce the operating rates if demand still sluggish onward. The sources opined to SSESSMENTS.COM that PET prices will follow crude oil price movements.
