Chinese PET extended firming trend

Players reported this week; PET offers from major Chinese suppliers continue to inch higher by $10/ton compared to last week, reaching $880-890/ton FOB China, LC AS term. While demand is subdue in the northern hemisphere, sellers claimed higher production costs as a result of rising MEG and PX prices to be accounted to the latest price increment.

A Chinese producer said, “We have also lifted local prices slightly due to the depreciation of the Chinese Yuan. Demand is not really within our expectation, however we need to protect our margins from stronger feedstock costs.”

An Indonesian buyer received Chinese PET offers at $920/ton CIF, LC AS term added, “We think this price is a little too high at the moment. We are still able obtain domestic material at only $880/ton FD Indonesia, cash term. Therefore, we have no plan to buy from import market amid slow end product business.”