Local PET prices remain stable, export prices move lower
A trader based in Shanghai commented, “Demand is quite weak and we do not receive many inquiries from buyers. Local supply is tight due to production cuts ahead of G20. Chinese producers were oversold for June and July, which is another reason for the current tightness in the local market. However, tight supply is counterbalanced by insufficient buying interest. Many producers are currently dealing with clearing their backlog orders and have started to offer for September shipment as August shipments are closed. We also hear that some producers do not want to shut before G20 as they have backlogs to clear.”
Export demand is not considered good. “Chinese producers prefer to sell to their local market due to better netbacks,” commented an overseas buyer.
Last week, local prices for PET bottle were reported at CNY6400-6650/ton ($824-856/ton excluding VAT) on FD/ex-warehouse China, cash inc VAT basis while export prices were reported at $820-840/ton on FOB China, cash equivalent basis.
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