Export PET prices from China spike on bullish fundamentals
The overall range for export PET bottle prices from China currently stands at $1280-1315/ton FOB, cash, indicating notable hikes of $65-95/ton when compared to last week.
A Shanghai-based trader commented, “PET maintains its bullish run owing to higher crude oil futures, rising MEG and PTA prices and low inventory levels inside China. Demand from export destinations has been improving recently. We believe that the market will preserve its firmness in the near term.”
The bullish sentiment has also been supported by the recent positive developments in the country’s economy. According to official data released by China’s National Bureau of Statistics, the country’s GDP grew by 6.8% in the first quarter of 2018, beating earlier expectations of a 6.7% increase.
A Vietnamese trader received a PET offer for a Chinese origin at $1330/ton CIF, cash. “The offer is up by $70/ton from last week due to Chinese suppliers’ limited allocations. Offers are given either for end-May or June shipment,” he said.
In the meantime, China’s local PET market has also extended its firming trend into this week, with the overall range for domestic prices experiencing weekly gains of around $55-75/ton. A local producer opined, “Prices are surging on the back of tight supplies and healthy demand. The earliest deliveries from domestic sources are slated for June.”
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