China’s new PET shipments delayed, prices at more than 3-year high in Asia
When it comes to Southeast Asia, PET prices have also followed suit in line with the firming in China as well as tightness across some of the regional markets.
Apart from supply issues, firm MEG and PTA prices also gave an upper hand to sellers in negotiations despite fading pre-holiday activities. As can be seen in the graph below created by ChemOrbis Price Wizard, the weekly averages of export PET prices from China and South Korea as well as import PET prices in Southeast Asia are currently standing at their highest levels since October 2014.
A local producer in China reported that their export PET bottle offers increased by $80/ton when compared to their early February levels. “Our supplies are quite tight and shipments are only available for the middle/end of March,” a company source noted.
A second Chinese producer raised its offers by $20/ton on a weekly basis, commenting, “We have limited allocation and our shipments will take place in April.”
In Southeast Asia, the Thai market has been facing supply tightness over the past weeks due to the fact that a local producer has been allocating more cargoes to export markets. An Indonesian producer, meanwhile, is planning to have a maintenance shutdown in March.
A Thai converter reported that offers they received from a local producer are higher when compared to last week due to tightness. “As import prices are now more competitive than locals, we imported some cargoes from China,” he noted.
An Indonesian converter said, “We think prices will have no room to go down as supplies are limited in Indonesia and costs are higher.”
In Vietnam, a trader reported that their offers for Chinese cargoes increased by $10-15/ton from last week while they received no allocation for Indonesian cargoes.
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