PET prices in Asia soften after holiday

According to PET players in Asia, several producers elected to approach the region with stable to softer offers during this week. The prices of MEG, a feedstock for PET, in Asia started this week with losses despite a recovery seen in the following days while demand was mostly stagnant across the region, weighing down on the market.

In China, the PET market returned soft from the holiday as demand was weak with market players gradually returning to their desks while the low season is also nearing. A Chinese producer’s export PET offers fell by $50/ton to $970/ton FOB China, cash when compared to late September.

Another Chinese producer also reported that their export and local PET offers indicate decreases from the pre-holiday levels at $1000-1005/ton FOB, cash and at CNY7950-8000/ton on an ex-warehouse China, cash including VAT basis ($1026-1032/ton without VAT). “We lowered our offers given soft MEG prices as well as weak demand. We think buying activities will slow further down in line with the nearing winter season.”

A trader reported that their export offers are stable to softer from the pre-holiday levels at $1000-1010/ton FOB, cash. “We have slightly decreased our offers given lower MEG prices in early week," he said.

A third Chinese producer kept its export offers to the region stable at $1000/ton FOB China, cash basis while the producer’s local offers were down by CNY150/ton ($23/ton) when compared to three weeks ago to CNY8000/ton on an ex-warehouse China, cash including VAT basis ($941/ton without VAT).

In Southeast Asia, the market has turned soft this week, although the import PET market remained unresponsive the China’s pre-holiday soft sentiment as well as its absence last week with support of antidumping duties on PET imports from China.

In Vietnam, an agent of a Taiwanese producer reported that their supplier’s PET offers fell by $30/ton this week to $1080/ton CIF Vietnam, cash. “Offers softened given the losses in MEG prices in early week and weak demand in Vietnam,” he added.

In Thailand, a Chinese producer reported that they rejected a bid for PET at THB32,000/ton ($964/ton) FD Thailand, cash excluding VAT basis. “Demand in Thailand is quite slow ahead of the late king’s cremation ceremony along with the prolonged rainy season,” a producer source noted.

In Taiwan, a producer reported that their export prices came down by $30/ton when compared to the second half of September to $1020/ton FOB Taiwan, cash. “Our profit margin is quite narrow and our export offer level may be lower than the offers of other Taiwanese producers as we are trying to deplete our stocks before the winter season starts. We think Reliance’s new MEG capacity is also pressuring prices. Demand from Japan is good while it is weaker from the USA given the petition on antidumping for Taiwanese origin,” a producer source commented.