PET Demand In China Dwindled On Rainy Season And Yearly Festival
- Local and export PET Bottle offers captured moving in the same trend
- Buying sentiment softened as peak season is almost over
- Local PET prices to follow MEG and PTA price movement as sellers have no inventory pressure
Market sources informed SSESSMENTS.COM that PET demand in China dwindled on the rainy season and yearly festival. Supported by the stable MEG and PTA prices, local PET Bottle offers were kept stable on a weekly comparison at CNY5,700-5,750/ton ($805-812/ton) on cash, EXW China basis, and including 13% VAT. Likewise, PET Bottle offers to the export market were also kept stable compared to the same period, captured available between $685-700/ton on LC at sight, FOB China basis. Sources revealed that there were no deals concluded both in the domestic as well as the export market.
Market sources reported to SSESSMENTS.COM that the PET market in the country is rather quiet for this week as players are on a holiday mood due to Dragon Boat Festival celebrated on June 25-27. Moreover, the buying sentiment has softened due to the rainy season, and most converters already secured materials in the previous weeks. Similarly, demand from the export market remains weak as well and some buyers reported having sufficient inventory on hand. On the supply side, no issues were reported by market players this week.
Regarding the outlook, majority of Chinese market players contacted by SSESSMENTS.COM expressed an opinion that local PET Bottle offers will most likely follow the MEG and PTA price movement in the near term as sellers claimed to have no inventory pressure. Meanwhile, some sources predict local PET prices will move lower in mid-July following the slowdown of finished products’ digestion rate when peak season is over.
