Export PET offers from China continue downtrend
Export PET offers from China sink to 2-month low
The weekly average of ChemOrbis Price Index shows that China’s export PET market hit a five month-high by early April and shifted direction afterwards.
It has been three weeks since the downtrend kicked off and the market is currently standing at its lowest levels since late February 2019.
Offers below $1100/ton FOB China threshold reappear
PET bottle offers below the $1100/ton FOB China threshold have appeared in the market this week. The last time offers below this level were reported was around late March 2019.
PET offers move in lockstep with upstream
Spot paraxylene (PX) prices in Asia have lost 10% within the past three weeks, according to data from ChemOrbis Price Wizard. Chinese PET players mainly blamed this factor for lower PET offers in the export market.
On the cost side, spot MEG and PTA prices in Asia are also indicating decreases when compared to early April levels.
Meanwhile, the rally in NYMEX and Brent crude oil futures that was in place since early March has stumbled recently.
Demand unresponsive to high season
Weak demand has also added to the downward pressure in the market despite the high season for PET applications, pushing sellers to maintain their softer pricing this week.
Local PET prices follow a similar path
China’s local PET market has moved in line with the export market and started May on a softer note. Several Chinese suppliers have applied additional decreases of CNY200-250/ton ($30-37/ton) on their local PET bottle offers so far this week.
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