PET players question sustainability of recent upturn in Asia as low season nears
The local market has witnessed fresh hikes so far this week, with producers pointing to still-rising PTA prices. However, some questioned the sustainability of increases given the approaching end of the high season for the beverage sector in the Northern Hemisphere.
A source from a Chinese PET producer reported that they implemented an additional increase of CNY200/ton ($29/ton) on their local offers while keeping export prices stable at last week’s levels. “Surging PTA costs continue to support a firming trend in the PET market. However, we might start to feel sales pressure over the short term as the low season is around the corner,” he noted.
Spot PTA prices on CFR China basis have climbed around $65-70/ton on a month over month basis.
Another producer in China commented, “We expect to see no major changes in prices for the near term since the upcoming low season coupled with new capacity additions across Asia are blurring the outlook.”
Last week, meanwhile, a South Korean producer also lifted its export PET offers for the first time since early June. “Our offers are up by $20/ton given higher costs,” a producer source said.
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