Rising energy and feedstock prices prompt further gains in Asia PET markets
Rising freight costs as well as improved demand in China’s domestic PET bottle market have also contributed to firmer sentiment.
Chinese suppliers’ firmer pricing leads the way
Since last week, Chinese suppliers have been slightly lifting their PET bottle offers to export outlets.
“We have raised our PET bottle offers by $20/ton on the back of firmer costs. Moreover, demand from the local market has picked up this week amid higher PTA futures on the Zhengzhou Exchange Demand from export outlets, however, remains subdued due to the slow post-lockdown recovery,” a source from a Chinese producer commented.
Export PET bottle offers from China are up by $15-20/ton on the week to be assessed at $665-700/ton FOB China, cash.
Chinese suppliers’ firmer policy has been followed by other Asian suppliers from Taiwan and South Korea.
Export PET bottle offers from South Korea are also up by $10-20/ton on the week to be assessed at $710-730/ton FOB Busan, cash.
A Thai producer also hiked its PET bottle offers to neighboring countries by $20/ton and to its own local market by THB1000/ton ($33/ton) week over week.
“Our export and local PET bottle offers are slightly higher this week due to rising costs. We have also increased our production rates to 95%,” a company source opined.
As for Southeast Asia, meanwhile, the overall range for import PET bottle offers are also $20-25/ton higher on the week to be assessed at $680-745/ton CIF, cash.
Raw materials firmer
PTA futures on the Zhengzhou Commodity Exchange gained a total of $8/ton on Tuesday and Wednesday, November 24-25.
Spot PTA and MEG prices also increased around $15-25/ton on the week to stand at $450-455/ton and at $495/ton in early week on CFR China basis.
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