Export PET prices from China retreat further
During this past week, Asian PET export prices retreated by $20/ton at the low end of the overall range and broke below the $1000/ton threshold. According to the ChemOrbis Price Wizard, the most recent decreasing trend on export PET prices started in mid-May and export prices have lost around $120/ton since then. When looking at the below ChemOrbis Price Wizard graphic, it shows the yearly progress of Chinese export PET prices and shows that the current export prices are over $300/ton below the prices reported a year ago.
Source: Chemorbis Price Wizard
A trader operating in China commented, “Overall PET demand is performing poorly in China but the local demand is relatively better than for exports. However, both markets witnessed price reductions on a week over week basis. Nowadays, the general PET operating rates are around 70% but we are not expecting an easy rebound on prices. According to our calculations, export PET prices from China recorded 15% drops on a year on year basis.”
A Chinese producer who offers towards the high end of the overall export PET range, which remains above $1000/ton, cited, “It is very hard to conclude deals recently as demand has slowed down in China further. We hear very low offer levels given in the market and because of these lower levels, we feel under pressure to compete. Since we do not want to cut our prices, we feel like there is no point of offering aggressively in the market.”
A Shanghai based trader remarked that the buying interest is limited since buyers are cautiously approaching the market, expecting to see further downward movement in prices.
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