Cost support, improving demand drive Asia PET markets slightly higher
As can be seen in the graph below created by ChemOrbis Price Wizard, the weekly averages of CIF China and CIF SEA basis PET prices edged up by $5-10/ton when compared to last week to stand at $1125/ton and $1205/ton, respectively.
Upstream costs slightly higher
MEG futures on the Dalian Commodity Exchange and accordingly spot MEG prices have been pressured by falling coal futures prices since mid-October. However, the sentiment for Asia MEG markets has slightly improved this week in response to the slight increase in PET prices.
Spot PTA prices on CFR China basis are also $10-15/ton higher from last Friday to stand at $715-720/ton.
ChemOrbis Price Wizard also shows that FOB Korea basis spot paraxylene prices are nearly up by 2% from last week to stand slightly above $900/ton.
Demand improves, particularly in SE Asia
A South Korean producer lifted its export offers by $10/ton on the week to $1150-1170/ton FOB South Korea, cash basis.
A company source commented, “Regional demand in Southeast Asia has picked up as more countries have relaxed Covid lockdowns given the rising vaccination rates across the region. Additionally, higher freight due to shortage of containers has driven landed prices higher in these regions.”
Operating rates on the converters’ side are heard to be higher in Southeast Asia, helping demand recovery for PET in the region.
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