As stated to SSESSMENTS.COM, a South Korean producer has sold out July shipment allocation, mostly to North America markets. As informed, the producer managed to conclude deals for July shipment PET Bottle cargoes between $730-740/ton on LC at sight, FOB Busan basis, or $10/ton lower than the initial offer level, mainly to Canada and the US markets. For this week, the producer maintained a stable offer level as compared to a week earlier since the company has no sales pressure. As the overall market is not in good shape, most customers in Europe were placing bids between $20-25/ton lower than the initial offer level. However, the producer rejected the bids since the company is unwilling to entertain requests for a steep discount.
Demand-wise, the South Korean producer mentioned that sales from the company’s end in the domestic market remain satisfactory, backed by rising demand on warmer weather in the country. Traditionally, as summer sets in, warm weather encourages the beverages water sales in particular. Overall, the South Korean PET market is showing signs of recovery with the COVID-19 infection curve in the country has flattened in recent weeks. In contrast, the overall demand from the export market is not forthcoming on the back of growing concern over the second wave of coronavirus pandemic. On the production front, the producer’s plants are running at full capacity, no technical issues reported to SSESSMENTS.COM.
Speaking of pricing outlook, the producer stated that the company plans to release August shipment offers by the end of June or early July, adding that the upcoming offers will depend on MEG and PTA prices.
