Export PET prices from China rally back to mid-June levels
Weekly average data from ChemOrbis Price Index suggest that export PET prices on FOB China basis have cumulatively climbed by more than $125/ton for the past five weeks, cancelling most of their total losses recorded in the period between mid-June and early August.
A Chinese producer also increased its offers by $25/ton from last month and a company source said, “Although buyers mostly remain cautious on their purchases, PET offers continue to rise given higher PTA and MEG prices.”
In Asia, spot PTA prices on CFR China basis have climbed $195/ton when compared to initial August levels while spot MEG prices with the same terms have also increased by $50/ton over the same period.
A second Chinese producer raised its export PET offers further by $40/ton this week when compared to two weeks ago. “Bullish PTA and MEG prices continue to put pressure on PET. Suppliers remain firm on their offers while buyers mostly prefer to adopt a wait-and see stance. We think that weak demand is the factor that prevents prices from posting even larger increases,” a source from the company commented.
On the other hand, some players argue that prices may face a sharp downturn in the near term considering the lack of support from the demand side.
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