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This week, the Asian PET market is developing in diverged direction as couple of Chinese suppliers stepped back on their offers on inventories pressure. However, other sellers in the region are very firm on their cargoes in light of improving demand condition and strong upstream costs.

It is reported that a major Chinese producer has slashed export PET offers by additional $10-20/ton from last week, bringing latest prices to $930-940/ton FOB China, LC AS term as pressure build up in local market as new PET plants comes into operation, posing significant threat of supply surplus. “We cut our offers this week with hope to speed up sales process. Local demand is still sluggish and with additional capacity emerge, we fear that market might see additional price cut in the near term,” a Chinese producer said.

In contrast, Korean producers are maintaining firm stance on their cargoes to Vietnam this week at $1020/ton CIF, LC AS term. “Only the lower grade the maker offered at $1000/ton with the same term, and we are negotiating for $10/ton discount to make some purchases.” Explained to such hesitancy in negotiating on deals, a distributor offered on behalf of the producer said, “Demand in the Western market is picking up which might offer better margins than Asia. We also expect buying interest in Vietnam to pick up in the near term as the Spring is ending soon.”

Another Chinese producer maintain offers unchanged at $970/ton FOB China, LC AS term reported, “Overseas buyers are not very attracted to our prices, however we might hold offers stable in line with stabilizing upstream costs. We think stronger energy market would also provide some support to the market in the coming weeks.”  

Export offers from China current stand at $930-970/ton FOB China, LC AS term.