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It is reported that couple of major Chinese producer has stepped back on export PET offers this week after an extended period of continuous firming trend. Latest offers stand at $950-980/ton FOB China, LC AS term, down $10-20/ton week on week basis.

Persistent weak demand in Southeast Asia is blamed for such movement with a producer said, “Meanwhile, we maintain local offers in China unchanged since demand here still healthy. We do not expect any significant reduction in the near term considering the current firm upstream costs.”

Other sellers also raise similar expectation that market would hold mostly stable in the remaining of July with the support of steady demand from beverage sector. Besides, two new plants that were initially scheduled to come online during late quarter 2 have postposed to early September - Chengxing’s phase I 600,000/year and Yisheng Hainan’s 250,000/year lines. Supply pressure therefore subdue visibly.

“At the meantime, we are monitoring final decision from Indonesian and Japanese government regarding the implementation of anti-dumping duties on import Chinese PET, which to be finalized latest by October. This might cause a retreat in export activities,” another producer added.