China’s export PET market faces correction after rising 10% from two-year-low
The main reason behind the correction was cited as the recent losses in spot PTA and MEG prices. Resistance has also built against such sharp hikes in a short-time. A large portion of these hikes showed up last week, when sellers mostly relied on low stocks and improved buying sentiment.
Spot PTA and MEG prices in Asia lose ground
After having a strong start to July, spot PTA prices on CFR China basis have lost some ground recently. They are currently standing around $60/ton lower when compared to last week.
Spot MEG prices, meanwhile, have witnessed a relatively smaller weekly decrease of around $25/ton with the same terms.
China’s PET markets slightly down despite low stocks
Despite the lack of sales pressure amid low stocks, several Chinese producers have applied weekly decreases of $10-20/ton on their PET offers to export outlets so far this week, citing the weakening in upstream markets.
A similar panorama has been observed in China’s local PET market since early this week. Chinese producers have lowered their PET offers to their local market by CNY100-200/ton ($15-29/ton) based on the same factor.
A source from one of the companies opined, “After several weeks of gains, PET offers have responded to the recent losses in upstream markets and slightly softened. We evaluate this as a temporary correction and we think that the market will regain its strength in the days to come.”
Import PET market in Southeast Asia follows suit
Southeast Asian PET players have also reported some downwards adjustments as well. A Vietnamese trader cut its PET offers for China origin by $35/ton and noted, “We have revised our offers down this week and are now waiting for the market’s response.”
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