WeeklySSESSMENTS: China PET Prices Week Starting June 29

Author: SSESSMENTS

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China's PET Prices Strolling In Tune With Demand

Local and export PET Bottle offers established on the same trend
PET demand in local and export markets slowed down by different factors
Players foresee further price corrections

Chinese market sources contacted by SSESSMENTS.COM cited that local and export PET prices are strolling in tune with demand. On the week starting June 29, PTA and MEG prices recorded down by CNY100/ton ($14/ton) over the week owing to the high effect of COVID-19 on the textile industry; leading to a sharp drop in demand for clothing. Following suit, the majority of Chinese PET producers decided to trim their offers for the local market by CNY50/ton ($7/ton). To the export market, some Chinese PET producers kept stable offers, while some others lowered the offers by $5-10/ton. All price changes are on a weekly comparison. At the time of publication, several producers managed to conclude some deals yet the volume reduced compared to the past few weeks.

This week, demand for PET resins in the domestic market began to soften in-line with the completion of replenishment activities from converters. Moreover, some converters have no longer placed prompt delivery orders; instead, booked a considerable amount of quantity for October production or even later. In the export market, the demand has dampened by the rainy season, especially in India and Southeast Asia. Despite the waning demand, a local producer claimed to have no inventory pressure on their shoulders since the company already sold lots of quantities in June to both local and export markets. No supply issues reported to SSESSMENTS.COM this week.

For the outlook, a producer told SSESSMENTS.COM that around late July, China’s PET market will start to enter the traditional low-season of the year. As such, the producer believes that local PET prices will move further down in the upcoming week. On the other side, other market players opined that the movement of local and export PET prices will most likely depend on monomer prices.

Local PET Bottle offers on cash, EXW China basis (including 13% VAT in CNY term, excluding VAT in USD term)