Firming becomes more visible in Asian PET market
Higher prices were mainly triggered by the recent gains in spot MEG prices, which are currently up by $80/ton when compared to early April levels. Chinese PET suppliers’ low inventory levels as well as the high season for PET applications in the Northern Hemisphere also contributed to the firming trend.
Inside China, a bottle manufacturer received CNY170/ton ($27/ton) higher offers when compared to his latest done deal ahead of the Tomb-Sweeping holiday. “PET prices have witnessed some further gains after last week’s rebound given firmer costs. Local producers have limited availability while demand has started to improve in line with the high season,” he commented.
A Chinese trader noted, “We think that the recent firming trend across Asian PET markets will remain in place in the days ahead with the support from firmer costs, Chinese suppliers’ low inventory levels along with healthy demand in China’s local market.”
In Vietnam, a trader reported that their offers for Chinese PET increased by $10/ton when compared to last week. “We think that the PET market will preserve the current firming trend in the days ahead given higher costs,” he opined. Another trader also informed that Taiwanese producers also increased their export PET offers to Southeast Asia by $20/ton from last week.
Meanwhile, a South Korean PET producer reported concluding deals at last week’s levels. A company source noted, “We elected to keep our offer levels stable this week in order to test the market response. Expectations are mostly calling for higher prices in the midst of firmer upstream markets.”
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