Asian PET bottle markets continue to soften amid anemic demand

Subdued demand continues to weigh heavily on Asia’s PET bottle markets, pushing prices lower. Despite a slight rebound in feedstock costs and reduced production rates, slow trading activity throughout the supply chain has kept the market under pressure.

PET bottle markets across Asia have continued to follow a stable to softer path for another week. Although crude oil and feedstock monomer prices rebounded slightly over the past two weeks—previously cited as one of the main factors behind the bearish sentiment—the persistent weak demand across the region remained the primary driver, limiting any potential price increases.

Export markets hit 3.5-year lows

FOB offers from China and South Korea reached levels last seen in February 2021. These markets have been on a stable to downward trajectory for nearly four months, aside from a brief uptick in China’s export market in early July.

In the current week, export PET bottle offers from China were assessed stable to $10/ton lower from a week earlier at $810-860/ton FOB, cash while South Korean offers were also assessed $10/ton lower at $890-910 on FOB Busan, cash basis. Meanwhile, export South Korean offers moved below the $900/ton mark with the latest revisions.

Suppliers from Northeast Asia pointed to sluggish trading activity across the supply chain. “Both regional and domestic markets remain weak due to poor demand in upstream and downstream sectors,” said a source from a Chinese producer.

SE Asian import markets drop to multi-year lows

In Southeast Asia, the stable to lower trend that started in mid-May continued this week, bringing prices to their lowest levels since late January 2021. Chinese offers continued to exert downward pressure on the low ends of the price ranges, dropping to levels last seen in mid-January 2021.

Import PET bottle prices in Southeast Asian markets were assessed stable to $10/ton lower from last week at $810-950/ton on a CIF SEA, cash basis.

Downstream players maintained a need-basis procurement approach as demand for end-products remained weak. “The trading atmosphere is dull due to sluggish demand in the region,” commented a Malaysian converter.

Local markets align with regional trends

Chinese domestic PET bottle markets have been on a stable to softer path for eleven weeks, despite relatively tight spot availability. Monomer prices on a CFR China basis saw sharp declines in recent weeks, preventing suppliers from introducing price hikes, even though production rates had been cut earlier. Local prices were assessed stable to CNY200/ton ($28/ton) lower from last week at CNY6150-6300/ton ($772-791/ton excluding VAT) FD/ex-warehouse China, cash including VAT.

In Malaysia, local PET bottle prices have traded stable to lower for nine weeks, according to ChemOrbis Price Index data. This week, prices were assessed stable to MYR450/ton ($109/ton) lower from the previous week, at MYR3850-4400 ($917-1048/ton) on an FD Malaysia, cash basis. The latest steep discounts brought domestic prices in dollar terms back to early June levels, according to ChemOrbis Price Wizard data. Malaysian players noted that the rapid appreciation of the local currency against the USD, along with weak demand, forced suppliers to offer discounts.

In Indonesia, the domestic PET bottle market has followed a stable to softer trajectory since mid-April, as per ChemOrbis Price Index. This week, prices were assessed IDR600,000/ton ($40/ton) lower than last week, at IDR14,800,000-14,900,000/ton ($972-979/ton) FD, cash. A source from an Indonesian producer attributed the ongoing softness in the local market to persistently weak demand, low feedstock prices, and poor downstream market conditions.