Chinese Market Players Shared Optimistic Outlook For PET Market Following Current Domestic Demand
- Deals from export market remain scarce
- South Africa announced anti-dumping duty policy on Chinese PET Bottle resins
- Domestic demand continues to support China PET market
Chinese market players shared a positive outlook for the PET market following current domestic demand. On the week commencing May 18, SSESSMENTS.COM noted that local and export PET Bottle offers in China were on an uptrend. Following the higher crude oil prices, Purified Terephthalic Acid (PTA) and Mono Ethylene Glycol (MEG) prices increased by CNY200-300/ton ($28-42/ton) from last week. As such, some local producers adjusted up PET Bottle offers by CNY200/ton ($28/ton) compared to the same period. Likewise, to the export market, PET Bottle offers from the producers increased by $20-30/ton on a weekly comparison. While export offers from a trader increased by $5-15/ton as compared to last Friday’s level. However, deals remain limited due to weak buying sentiment in export destination countries.
As supported by the hot weather, overall PET demand in the domestic market is healthy. Moreover, buyers started to place some orders due to higher PET prices. While from the export market, South Africa, one of the export destination countries, announced an anti-dumping duty policy on Chinese PET Bottle resins, which resulted in the decline of China’s export volume. However, local producers stated to SSESSMENTS.COM that the policy would not have much impact as they will focus more on Asia and Europe markets. On the supply side, the inventory of PTA and MEG will remain high due to a decline in export finished product orders, particularly for finished PET fiber goods.
Looking ahead, the majority of Chinese market players opined to SSESSMENTS.COM that despite the uptrend in crude oil prices, the room for PET prices to increase is limited due to the high inventory of PTA and MEG. However, as demand in the domestic market is healthy, the PET prices should be stable in the near term.
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