Trader: Thai producer increases local PET offers
The producer currently offers PET bottle at THB34,000/ton ($995/ton) on FD Thailand, cash basis, up by THB500/ton ($15/ton) from two weeks ago.
However, the trader stated that there are indications that offers will be softer in the near term given the recent volatility in crude oil futures coupled with fading demand ahead of the rainy season.
There were other comments supporting these softening expectations as well. A source from another local producer commented, “Global PET prices increased last week due to firm MEG prices, which found support from higher crude oil prices at the beginning of the week. However, this uptrend was halted as crude oil prices lost some ground at end of last week.”
A Thai converter said, “We have managed to have some orders from customers, but we think demand will continue to weaken in the near term. Although polymer prices move in line with the route of crude oil prices, we think weak demand will limit huge price gains in the local market.”
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