China’s PET market dips further
In the local market, the overall price range retreated by CNY50-100/ton ($5-12/ton) from last week to be currently quoted at CNY7200-7550/ton ex-warehouse China, cash including VAT ($894-937/ton without VAT).
A source from a domestic producer commented, “Demand remains limited as buyers are not in a hurry to replenish their stocks, expecting to see further decreases based on lower costs. However, producers are not feeling a serious supply pressure for now as they still have backlog orders to clear.”
As for the export market, PET prices posted decreases of $10-30/ton when compared to last week., with the overall range standing at $910-940/ton FOB China, cash. Data from ChemOrbis Price Index reveals that export PET prices on a weekly average basis are currently standing at their lowest levels since last December.
Source: ChemOrbis Price Index
A trader based in Shanghai cited the recent significant losses in crude oil futures as one of the main reasons behind the ongoing downward pressure on the PET market. May crude oil futures on the NYMEX posted a cumulative decrease of $2.14/barrel in the last two days to reach $50.27/barrel on April 20.
“Demand from export markets is regular while Chinese materials continue to gain price advantage in line with the recent decreases. We believe that demand will set the tone of the market in May,” opined the trader.
In upstream markets, spot PTA prices have retreated around $15/ton when compared to initial April levels to be currently quoted at $625-630/ton CFR China while spot MEG prices are down by $35/ton over the same period to reach $705/ton with the same terms.
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