A Chinese PET producer shared with SSESSMENTS.COM on the downward adjustment for local and export PET Bottle offers following the MEG and PTA price movements. On a weekly comparison, local PET Bottle offers from the producer dopped by CNY100/ton ($14/ton). While for the export market, the producer decided to reduce PET Bottle offers by $20/ton following the decrease in MEG and PTA prices between CNY200-300/ton ($28-42/ton) compared to the same period. Deals for export PET cargoes concluded at $10-20/ton lower than the initial offer level at $680-690/ton on LC at sight, FOB China basis.
Demand-wise, both the local and export market is weak. However, the export market is worse as buyers are not keen to make procurement due to high inventory on hand. Further explained by the producer, the Coronavirus cases outside China increase day-by-day, which caused some customers slashed their operating rates. The producer opined to SSESSMENTS.COM that buying sentiment in China will continue to improve as the current market is already on the normal track. While buying sentiment in the export market will highly depend on the Coronavirus outbreak situation.
