Recovering downstream activity supports sentiment for PET bottle in China
The news that factory workers in China are gradually getting back to work has supported the sentiment in the PET market to some extent since last week. Prior to this, factories were forced to remain offline for around two weeks after the end of the extended Lunar New Year holiday in an attempt to prevent the spread of COVID-19.
The activity pick-up has eased concerns over supply recently, market players reported. Since the start of the novel outbreak by late December 2019, China’s PET inventories have increased amid sluggish demand and pushed sellers to cut their operating rates or even to shut their plants.
This week, several Chinese producers have rolled over their PET bottle offers to export outlets and to their own markets for early March shipment, citing the slow recovery in buying interest.
A source at one of these companies opined, “Although overall demand remains weak, trading activity has improved since last week with players beginning to return to their desks.
However, downstream players are still holding high inventories. Therefore, PET bottle prices have moved sideways and we expect to see a similar trend over the near term.”
Prices mostly stable at multi-year lows
The weekly average data obtained from ChemOrbis Price Index reveal that PET bottle prices on FOB/ex-warehouse China basis have almost stabilized at their lowest levels since February 2016 and January 2016, respectively.
Export PET bottle offers from China are currently reported at $800-825/ton FOB, cash basis. The range is currently stable to $5/ton lower when compared to last week.
The local PET bottle market has also followed suit, with prices following a stable to CNY50/ton ($7/ton) lower trend on the week to be reported at CNY6150-6300/ton ($876-898/ton without VAT) on an ex-warehouse China, cash including VAT basis.
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- Vietnam’s homo-PP market plunges to lowest since 2009
- China’s total PE imports in Jan-Feb fail to catch up with last year’s record on coronavirus
- Saudi major announces April PP, PE prices with sizeable drops as lockdown ramps up
- European PET demand soars, will it alleviate cost pressure?
- US PE pioneers aggressive prices globally, responding to energy slump
- Asian PS markets fall to lowest in more than a decade, ABS hits 4-year low
- Where will global PP prices head after crude saw 18 year-lows? Any clue from past?
- Economic fight against coronavirus: Policymakers take action across globe
- Downstream operations slacken amid virus-hit logistics, low demand in Europe
- Turkey's PP, PE markets brace for April drops, eyes on economy and logistics