A Chinese trader contacted by SSESSMENTS.COM informed regarding volatile China’s PET prices after the Saudi-Russia’s oil price war. After the significant drop in crude oil prices on Monday, March 9, local PET prices in China market also decreased significantly. SSESSMENTS.COM noted that a local PET producer in the country decided to decrease the offers by CNY400/ton ($58/ton) as compared to last week. However, as of March 11, the offers were hiked by CNY100/ton ($14/ton) from the level available a day earlier. To the export market, the offers stand between $735-750/ton on LC at sight, FOB China basis. However, the offers are still negotiable.
The trader further added that Chinese traders and manufacturers were utilizing the decreases in PET prices to stock up some materials. Since before the Lunar New Year, they kept the lean inventory and then the Coronavirus outbreak after the Lunar New Year has pushed buyers to adopt a wait and see stance. As such, their stocks should be at a low level. Therefore, it is a good time to do replenishment activities, SSESSMENTS.COM was told.
