Hot Weather In China Propped Up PET Demand, Optimistic Outlook In Sight
- Local PET offers gained support from monomer prices
- Sold out June delivery, a local producer has started to pre-sell August delivery onwards
- Positive outlook observed following the expectation of better demand from exports
A number of Chinese market players commented to SSESSMENTS.COM that the hot weather in the country has propped up PET demand. On the week starting May 25, local and export offers for PET Bottle were adjusted in mixed directions. In the local market, most PET producers maintained their offers stable from last week. Meanwhile, one of the local producers decided to raise offers by CNY100/ton ($14/ton) as compared to the same period owing to the firmer monomer prices and better state of demand in the domestic market. To date, some deals were successfully concluded at the initial offer levels, while some were closed at CNY100/ton ($14/ton) lower on the low-end of the price range as compared to the initial offer levels. Similar to the local market, export PET Bottle offers were mostly stable from last week. However, in order to maintain its competitiveness, a producer decided to lower export offers by $5/ton on a weekly comparison.
As reported to SSESSMENTS.COM, the overall demand for PET resins in the domestic market is going good this week. A producer mentioned that this week is still considered as the peak season, citing that the warm weather has played a good role in supporting PET demand. Due to this, the producer has sold out all of their allocations for July delivery and started pre-sell for August delivery and onwards. Similarly, demand in the export market also showed a slight improvement this week. On the supply side, there is no significant issue reported this week.
Looking ahead, Chinese market players contacted by SSESSMENTS.COM believe that local PET prices will remain stable to firmer in the upcoming weeks as supported by the recovery in the export market. Some Chinese players expect that more businesses in other countries will reopen in June and July, hence, demand from export will improve by then. While in the local market, PET demand might be getting stronger as the government has allowed schools to reopen.
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