In line with market expectation, Chinese PET producers contacted by SSESSMENTS.COM adjusted prices on shift in feedstock costs. Following a decrease of CNY100-120/ton ($14-17/ton) on week-on-week comparison captured on PTA and MEG costs, one of the Chinese PET producers lowered its local offers between CNY100-150/ton ($14-21/ton) from last week. The producer also trimmed offers to the export market by $10/ton as compared to the same period. Additionally, the producer is open for negotiation; willing to sell to the export market between $5-10/ton lower than the initial offer level. Likewise, another Chinese PET producer adjusted down local offers by CNY150/ton ($21/ton) from last week due to the same reason.
Both producers informed SSESSMENTS.COM that PET resins demand in the local and export market remains slow since the rainy season affects sales for end-products. In the domestic market, recent severe floods affected one of the biggest bottle drink manufacturers in China, hence, the company asked suppliers to stop delivering resins to the factory. Despite slow sales amid the traditional lean season, a producer revealed that their profit margin remains healthy with the current levels of PTA and MEG prices. Still, both producers agreed that PET prices in China will continue to face pressure owing to slow demand, hence, further price reductions remain in view.
