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A major Chinese producer reportedly lifted export offers for PET by $30-40/ton from last week to $1360-1380/ton FOB China, LC AS term. Price hikes become inevitable for Chinese producers amid rising upstream costs. Several producers in the country have cut operation rate due to negative margins. 

 “Overseas buyers are rather reluctant. Sales are slower partially due to the traditional off-peak season and high price levels. Looking at the costs side, we have little room for negotiation,” a source close to the producer informed.

Supply for PX in Asia has been tight over the past month and might persist in the near term following news about the shutdown at South Korea's Hanwha Total's No. 2 BTX unit, Japan’s JX Nippon Oil & Energy's Wakayama unit and Saudi’s PetroRabigh.

Several PET plants in China have decided to lower the production rate to protect profit margins amid rising costs and sluggish demand.

Supply for PET from China might tighten further in the near term in-line with these production disruptions. “Market is firm, especially entering the traditional high demand season in October. We have comfortable stock on hand and might turn to non-dutiable origin would Chinese materials continue to firm up,” a PET tray manufacturer in Southeast Asia added.