PET bottle offers from China move above $800 FOB threshold

PET bottle prices in China have extended their gains into another week with the support from rising feedstock costs. Export prices below the $800/ton FOB have disappeared from the market.

The overall price range for export PET bottle is up around $20-35/ton from last week and currently stands at $800-820/ton FOB cash. In the local market, prices are now reported CNY100/ton ($15/ton) higher from last week at CNY5600-5800/ton ($766-794/ton without VAT) ex-warehouse China, cash including VAT basis.

According to weekly average price data from ChemOrbis Price Index, PET bottle prices on FOB/ex-warehouse China basis have reached their highest levels since February 2020.

Price hikes are mostly cost-driven

Suppliers applied additional increases on their offers to the domestic and export markets this week amid rising PTA and MEG feedstock prices.

Spot PTA and MEG prices on CFR China basis increased $10/ton and $30/ton, respectively, on a weekly basis to be quoted at $550/ton and $595-600/ton at the start of the week.

A source from a PET bottle producer commented, “Prices are mostly seeing cost-driven hikes. Domestic demand is currently supporting higher price levels, but downstream players in China will soon start to leave their desks for the approaching Chinese New Year holidays. Demand from the Middle East, Europe, Africa, and North America has improved, meanwhile.”