China PET Market Withered On Traditional Pattern
- Local and export PET offers moved in the same trend
- PET demand softened
- Local PET prices predicted to fall further
Chinese market players informed SSESSMENTS.COM that the PET market in the country is withering following the traditional pattern. Compared to a week earlier, PTA and MEG prices reportedly decreased between CNY100-120/ton ($14-17/ton). Following the decreases in PTA and MEG prices, offers for local PET Bottle cargoes captured lower between CNY100-150/ton ($14-21/ton) compared to the same period. Likewise, the export offers for Chinese PET Bottle cargoes were also adjusted down by $10/ton from last week. Additionally, the supplier provided room for negotiation, willing to give a discount of $5-10/ton if there are serious buyers.
According to market sources contacted by SSESSMENTS.COM, PET demand in China continues to slow down due to the rainy season which causes a chain reaction to the traditional low season. Furthermore, sources also informed that Nongfu Spring factory, one of the biggest bottled drink manufacturers in China was flooded last week. Although the plant is still running at a normal rate, the company asked the producer to stop delivering the resins. While from the export market, the rainy season is also affecting the demand for finished products and dragging down buying sentiment. On the supply front, there are no issues reported by market players this week.
For the outlook, market sources opined to SSESSMENTS.COM that the demand will continue to wither following the traditional pattern. As such, local PET prices will most likely continue to move lower due to pressure from slow demand.
