Global PET markets preserve bullish run as high season nears
In China, PET producers extended their firm stance into the post-holiday period last week by applying fresh hikes of around $20-30/ton on their offers. “Chinese suppliers’ allocations are quite limited given their remaining backlog orders. Hence most of them are currently giving offers for late March shipments. We believe that export demand will improve soon in line with the approaching end of the winter season in the Northern Hemisphere,” a few traders noted.
The weekly average data from ChemOrbis Price Index suggest that export PET prices from China have recently hit their highest levels since September 2014 while the local market also stands at a more than three-year high.
Last week, a South Korean producer lifted its export PET offers by $10-20/ton from its pre-holiday levels, saying, “We expect prices to remain firm in March. Our allocation is limited given a maintenance shutdown at our plant.” The ChemOrbis Price Index data show that export prices from the country are standing at their highest levels since September 2014, on average.
In Southeast Asia, import PET prices have also maintained their bullish run in line with higher offers from major Asian suppliers amidst a series of planned shutdowns. The weekly average of import PET prices in the region is currently indicating the highest level since September 2014.
Players in Turkey’s PET market reported that both local and import prices were higher last week in response to China’s bullish return from the holiday as well as PET outages across the globe. The data from ChemOrbis Price Index reveal that local prices are currently hovering around their highest levels since October 2014, on average. A domestic producer said, “We are firm on our offers and we see no reason for decreases given the rebound in upstream costs.” A different local producer noted, “We have been sold out for the entire month of March.”
In Europe, PET players wrapped up their February deals with increases of €30-40/ton on the month while expectations for March mostly center on a new round of hikes owing to growing concerns regarding supply in the region. A Northwest European distributor opined, “We think that prices from local suppliers should remain firm due to some shutdowns in the region. Plus, demand may improve in the weeks ahead before the Easter holidays, the first important date of the high season.”
In Egypt, import PET prices were also higher in the previous week, with players reporting lingering tightness in supplies following the Chinese New Year holiday. Some buyers commented, “Despite the ongoing tepid stance of demand, sellers have approached the market with fresh hikes.” The weekly average of import PET prices in Egypt is currently standing at its highest levels since September 2014, according to ChemOrbis Price Index.
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