Asian PET bottle markets near 2-month highs; but lower costs cloud outlook

PET bottle markets across Asia continued their upward trend this week, despite visible declines in crude oil and monomer markets. The lingering bullish sentiment has been largely driven by cautious restocking from downstream factories and the previous sharp hikes in feedstock prices.

Export markets up for 2nd week

Chinese export PET bottle offers reached two-month highs, while offers from South Korea hit their highest levels in one-and-a-half months, following this week’s revisions, according to ChemOrbis Price Index data. Both markets extended their gains for the second consecutive week, with increases of $10-20/ton.

Chinese export offers were assessed at $860-910/ton FOB, cash, up by $10-20/ton from last week. South Korean export offers climbed by $20/ton from last week to reach $920-940/ton FOB Busan, as of October 16.

Export sellers shared cautious expectations based on market fundamentals. “Supply has increased slightly compared to previous weeks, while downstream purchases remain limited to immediate needs. Despite recent declines, costs are still high, putting pressure on suppliers. We expect prices to fluctuate within a narrow range in the near term,” said a source from a Chinese producer.

Meanwhile, domestic demand in China was reportedly higher compared to the pre-holiday period. “We’ve seen some restocking from converters after the Golden Week holiday, which has supported the uptrend,” added another Chinese producer.

A source from a South Korean producer echoed these sentiments, highlighting improved demand in China and its influence on other Asian markets. “Small-scale restocking by converters, along with earlier sharp increases in monomer prices, allowed us to raise our offers again. At the same time, local demand remains strong,” he noted.

3-week upturn in SE Asian import markets

Southeast Asia’s import markets continued their upward trend, with prices increasing by a total of $45/ton over the past three weeks. Import PET bottle prices in the region returned to late-August levels following the latest hikes.

“Chinese import offers remain more competitive than local prices, so we plan to restock from Chinese sources since our inventory is currently low,” said a Malaysian converter. However, other players in Southeast Asia noted that the markets remained quiet, as buyers were hesitant to take risks with feedstock prices starting to decline.

As of October 16, import prices in the region were assessed $10-20/ton higher from the previous week at $870-980/ton on a CIF, cash basis.

Local markets in line with import trends

Domestic markets across the region generally mirrored the upward movement of export markets, with suppliers justifying price hikes due to cost pressures.

In China, domestic prices were CNY100-300/ton ($14-42/ton) higher from a week earlier. ChemOrbis data showed this was the second consecutive week of increases for China’s domestic market, with prices in dollar terms hitting one-and-a-half-month highs.

In Indonesia, prices in the local market were assessed IDR600,000-700,000/ton ($39-45/ton) higher compared to last week. This marked the second week of increases, with prices hitting one-and-a-half-month highs in dollar terms, according to ChemOrbis data.

In Thailand, local prices stood THB1000/ton ($30/ton) higher from the previous week, with the market moving north for the second straight week while prices in dollars climbed to the highest level observed since May 2023.

Malaysia’s domestic market saw its first price increases after nearly three months of stable-to-softer trends, according to ChemOrbis data. As of October 16, prices rose by MYR100-150/ton ($23-35/ton) from last week.

A source from an Indonesian producer commented on the strong cost pressure and slight demand improvement, noting, “Local demand picked up slightly, in line with better buying appetite in China after the Golden Week, as converters restocked some material to hedge against potential further hikes driven by the earlier crude oil and monomer rally.”

PTA, PX soften from almost 2-month highs

However, the sustainability of the current uptrend appears uncertain as spot PX and PTA prices on a CFR China basis broke their 2–4-week uptrend this week with noticeable declines. Both markets softened from their nearly two-month highs, according to ChemOrbis data.

Spot PX prices fell by $50/ton from last week to $870/ton CFR China, although the market had gained $95/ton in total during the previous four-week rally. Spot PTA prices dropped by $30/ton from the previous week, now at $670/ton CFR China. PTA prices haven’t fully reversed earlier gains, with spot prices still up $50/ton over the past two weeks. Meanwhile, spot MEG prices remained stable at $570/ton CFR China, their highest level since late June 2022.