China-Based PET Producers: Current State Of Demand Unable To Depress Prices Amid Absence Of Sales Pressure
- Local and export PET prices supported by feedstock price movements
- Demand in the local market started to slow down amid some reasons
- Absence of sales pressure expected to persists and will serve as a brick wall for prices
A number of China-based PET producers contacted by SSESSMENTS.COM cited the current state of demand is unable to depress local and export prices amid the absence of sales pressure. On the week starting June 15, local and export offers for PET Bottle from several Chinese producers were recorded stable from last week’s level. The producers are capable of maintaining the offers firm as supported by the limited fluctuations in MEG and PTA prices. Besides, the producers are currently busy arranging deliveries and shipments for old orders. Hence, the producers are able to maintain the stable offer levels since they do not have any sales pressure on their end.
Demand-wise, SSESSMENTS.COM was told that sales in the domestic market are slowing down this week, citing that the majority of converters already replenish their stocks beforehand. Aside from that, the weakened demand for PET Bottle resins is also associated with sluggish sales for converters’ finished products which led to low production rate of around 60-70% from the normal capacity. Similarly, the number of orders coming from the export market is limited as well, even when lots of businesses around the globe have started to reopen lately. Some traders stated that buyers from the export market are still reluctant in taking overseas cargoes and prefer sourcing locally. Deals captured scanty to zero in both domestic and export markets. On the supply side, no significant issues reported this week.
For the outlook, Chinese market players contacted by SSESSMENTS.COM commented that most PET producers in the country are probably still entangled with cargoes shipments in the upcoming week. Therefore, although the current state of demand is expected to stagnate, players believe that PET Bottle prices will remain firm as buoyed by the absence of sales pressure.
