PET prices weaken further in Asia and Mediterranean
China leads price movements globally
In China, prices started to slip in the early days of July amid a drop in upstream prices and have fallen further since then after upstream cost failed to show an improvement.
In addition to lower costs, the bearish sentiment was further exacerbated by the disappointing end-product demand throughout Asia.
The weekly average of China’s export PET prices has declined as much as 7% since the start of the downtrend, according to ChemOrbis Price Index, and rescinded a large portion of the earlier gains
Offers for Chinese PET extend drops in SEA
Offers for Chinese PET cargoes declined for the third week in a row in the Southeast Asian market amid the continued weakness in demand and costs. ChemOrbis Origin-Based Indexes show that Chinese PET prices in the region have recorded a cumulative decrease of $66/ton on average in the last three weeks.
Bearishness in feedstock costs persists
The bearish trend in upstream PX values remained in place this week, in line with the ongoing drops in Chinese PTA prices. Talk of lengthening supply amid new PX and PTA capacities within the region are also adding downward pressure.
While spot MEG prices managed to edge up by the end of last week, they have since retraced losses. Crude oil futures also ended last week 7.5% lower despite a daily gain.
Offers below $1000 reappear in Turkey
Despite delayed shipments from China and the high season, import PET prices in Turkey have reversed a two-week uptrend last week.
According to ChemOrbis Origin-Based Indexes, Chinese PET prices in Turkey fell by around 7% in the past two weeks on average, retreating below the $1000/ton CIF threshold.
Import PET prices slip in Egypt amid weak demand
The same pattern was seen in Egypt at the end of last week. Offers for Chinese PET, which make up the bulk of the country’s import market, dropped for the third week in a row on the back of waning demand and long supplies.
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