SSESSMENTS.COM’s team noted that a South Korean PET producer made a hasty adjustment following the slump in crude oil prices. On Friday, March 6, the producer has reduced the export offers to $840-860/ton on LC at sight, FOB Busan basis, or at the same level to the done deals closed in late February. Following the plunged in crude oil prices, the producer made another adjustment on export offers between $20-40/ton lower from last Friday’s level.
As stated to SSESSMENTS.COM, the buying sentiment is weakening following the spreads of Coronavirus globally. The producer added that their main market is the US and Europe; hence the Coronavirus outbreak is affecting their sales. Additionally, as the significant decreases in crude oil and feedstock prices have added more uncertainties in the market, the producer has no choice other than lowered its export offers further for this week.
