Asian PET bottle markets recover from lows following China’s return

The rally in feedstock monomers and a modest demand improvement in China following the Golden Week holiday have provided support for Asian PET bottle markets, despite the persistent weakness in overall demand, especially from downstream buyers. Following the latest revisions, PET bottle prices across the region have recovered from their multi-year lows, as per ChemOrbis Price Index data.

Export markets edge up from multi-year lows

The bearish sentiment that dominated Chinese and South Korean export markets since early June ended with the return of Chinese players after the holiday. Prices in both markets have recovered from their lowest levels since February 2021.

This week, export PET bottle prices from China were assessed $30-40/ton higher compared to the pre-holiday level, at $840-900/ton FOB, cash. South Korean offers were also $10/ton higher from a week earlier to be assessed at $900-920/ton FOB Busan.

Players attributed these increases to improved demand in China after the holiday and feedstock costs which have been rising for some time.

SE Asia’s import prices recover from Jan 2021 Lows

PET bottle prices in Southeast Asia have rebounded to September 2024 levels after a two-week rise, following a six-week decline that pushed prices to their lowest since January 2021.

In the current week, import PET bottle prices for all origins were assessed $20/ton higher from last week at $850-970/ton on CIF, cash basis.

Nevertheless, Southeast Asian downstream players remained cautious, only making essential purchases. “Prices reacted quickly to the reopening of Chinese markets,” noted a Vietnamese converter. Another Vietnamese converter said, “Overall demand stays weak, with limited end-product consumption. We still opt to keep our procurements tied to our immediate needs as we anticipate prices won’t change much over the near term.”

Local markets also see increases

Domestic markets in Indonesia and China followed the regional PET bottle market trend. However, prices in both countries remain at their lowest points in dollar terms since January 2021.

In China, local PET bottle prices were CNY50-400/ton ($7-57/ton) higher, standing at CNY6200-6700/ton ($776-839/ton excluding VAT) FD/ex-warehouse, cash including VAT. China’s local prices had been stable to lower since early July, according to ChemOrbis Price Index.

In Indonesia, PET bottle prices were assessed IDR200,000/ton ($13/ton) higher from last week at IDR15,000,000-15,100,000/ton ($958-964/ton) on an FD, cash basis. ChemOrbis data reveal that Indonesian market had trended stable to lower for over six months until this week’s revisions.

A source from a Chinese producer noted the cautious sentiment among market players, saying, “Upstream costs have bolstered the PET bottle market, and prices are expected to maintain their uptrend.” Another Chinese producer highlighted improved demand in China, commenting, “Converters are restocking based on immediate needs.” A source from an Indonesian producer added, “Demand in China has improved, while PX and PTA prices have surged over the past few weeks.”

MEG hits June 2022 levels; PTA, PX at late August highs

Spot PX prices on a CFR China basis have been steadily increasing, gaining a cumulative $95/ton over the past four weeks. Spot PTA and MEG prices extended their gains into the second week, each rising by $40-50/ton.

This week, spot PX prices climbed by $20/ton from the previous week, reaching $920/ton CFR China. PTA and MEG prices also rose, standing at $700/ton and $570/ton, respectively.