China PET Market Started To Cool Down After High Number Of Transactions Recorded In Previous Weeks
- Most converters have purchased considerable volume in the last couple of weeks
- PET demand in the next two month is expected to remain healthy
- Chances to see a drop in local prices are slim
Based on data collected by SSESSMENTS.COM, the China PET market started to cool down this week after a high number of transactions were successfully recorded in the previous weeks. Offers from most local producers in the country were stable on a weekly comparison. Only one producer contacted by SSESSMENTS.COM’s team that applied an increase on local offers. Offers from the producer went up between CNY100-150/ton ($14-21/ton) compared to the same period due to the slight increases in PTA and MEG prices at the beginning of the week. Export offers from several producers were also unchanged from last week, still at $700/ton on LC at sight, FOB China basis. However, the producers mentioned that it is more difficult to conclude deals in the export market as compared to the domestic market. As such, one of the producers mentioned that export offers from the producer were not firm.
Pertaining to demand, SSESSMENTS.COM was informed that demand for PET in the domestic China market is not as good as the previous week as the number of deals has started to wane, but is still regarded as healthy. Most converters have purchased considerable volume in the last couple of weeks. Some converters that still make procurements this week are requesting forward delivery. No significant supply issues reported this week.
Looking ahead, the majority of Chinese market players contacted by SSESSMENTS.COM agree on a scenario that local PET prices in the country will be stable to firm as demand in the next two months is expected to remain healthy. Chances to see a drop in local prices are slim, the players opined. However, there are also market players that opined China PET price in the near term will fluctuate following PTA and MEG prices.
