Chinese Market Players: Continuous Shift In Local PET Prices Led To Better Buying Sentiment
- Local PET Bottle prices remain sturdy as supported by several factors
- Market expectations for continuous uptrend led to better buying sentiment
- Market players foresee optimistic outlook for prices and demand onwards
Chinese market players voiced out to SSESSMENTS.COM that continuous upward shift in local PET Bottle prices has led to better buying sentiment. On the week commencing June 1, local offers for PET Bottle from several producers in the country went up between CNY50-100/ton ($7-14/ton) on a weekly comparison. One of the local producers explained that the company decided to adjust up offers on the back of supply limitation, while some stated that the upward adjustment was driven by the state of demand and firm monomer prices. To the export market, since the overall demand is still considered weak, some producers preferred to maintain their offers stable from last week’s levels, currently offering at $700/ton on LC at sight, FOB China basis.
In general, demand for PET resins in the domestic market is quite strong this week. At present, healthy demand is mostly associated with hot weather, relatively tight supply, as well as firmer local prices. Not only for the near-term, some customers even started to place orders for October to next-year production. Citing that local PET prices are expected to remain on an upward trend onwards. Such an expectation was taken into account from most players who opined that the global economy would be back to normal around the end of the year and oil prices will return to $40/ton-level by then; which will lead to higher monomer prices as well. Unlike domestic, demand from exports remains subdued. On the supply side, no significant issues reported to SSESSMENTS.COM at the moment.
Looking ahead, the majority of Chinese market players contacted by SSESSMENTS.COM believe that the upward trend in local PET prices will persist considering the firm crude oil and monomer prices. Aside from that, demand in the domestic market is expected to remain healthy for at least two months ahead considering the hot weather.
