Local PET prices move lower in China

China’s local PET market witnessed lower levels this week after putting an end to its upward trend which had been in place since mid-October. Defying firmer MEG prices, the local market registered weekly losses of around $12-24/ton, with a few players attributing lower offers to weaker demand ahead of the upcoming holidays.

A bottle manufacturer commented, “Demand is not doing well in the local market as buyers are reluctant to build stocks ahead of the holidays. When compared to the recent years, the Chinese New Year holiday is to start earlier this year. The upcoming new capacities are also exerting pressure on the market.”

China’s Zhejiang Wankai is planning to launch its new PET line before the holiday starts. The new line has a production capacity of 550,000 tons/year.

Meanwhile, spot MEG prices surged by around $60/ton from a week earlier to reach $900-905/ton CFR China. When compared to early December, prices are up by $155/ton.

The overall range for local PET prices currently stands at CNY7850-8250/ton ($965-1015/ton without VAT) on an ex-warehouse China, cash including VAT basis.