Asserting Traditional Pattern And Other Factors, China PET Market Is Not In A Good Side
- PET price movements in China domestic market were mixed
- PET Bottle demand in the local and export market is on the same trend
- Outlook for PET prices is not on a positive note
Asserting traditional pattern and other factors, China market players foretell that PET Bottle market is not on a good side. Within the week commencing July 6, local PET Bottle prices in the China market captured moving into mixed directions. A Chinese PET producer increased the offers by CNY50/ton ($7/ton) as the producer has no inventory pressure at the moment. Although increasing the offers, the producer mentioned that the offers are still negotiable. Another producer maintained the offers stable from last week’s level, with some deals concluded at CNY50/ton ($7/ton) lower than the initial offer level. Citing the decreases of PTA and MEG prices and the weak demand, some producers decreased the offers between CNY50-100/ton ($7-14/ton). SSESSMENTS.COM was told that PTA and MEG prices dipped by CNY200/ton ($28/ton) and between CNY100-200/ton ($14-28/ton), respectively. Likewise, a reduction of $5/ton was also captured on the export offers. All price changes in this paragraph are on the week-on-week comparison.
In terms of demand, the local and export market is showing a limited buying interest in PET Bottle cargoes. The pouring rain which led to a flood in Southern and Eastern part of China dampened buying appetite for PET Bottle. Besides, the decreases in PTA and MEG prices have pushed buyers to the sidelines, anticipating lower PET Bottle offers in the near future. While in the export market, sufficient inventory on-hand and buyers’ preference to source local materials noted as some factors associated with the weak demand. On the supply front, SSESSMENTS.COM was told that Hengli Petrochemical has started up one line of its new PTA plant with a capacity of 1.25 million tons/year in late June. The second line with the same capacity is slated to come on-stream in mid-July.
Looking ahead, Chinese market players opined that local PET Bottle prices in the country still have some room for a further downward correction, taking into account the ample supply for PTA and the decreases in monomer prices. Demand-wise, improvement in demand of PET Bottle remains off-sight as the market is entering the traditional lean season, as stated to SSESSMENTS.COM.
