Export PET from China breached below $1000/ton mark

As demand remain weak in local market, it is reported that couple of Chinese suppliers have step back on their offers to export market this week, bringing latest prices to below the $1000/ton threshold, reaching $980-990/ton FOB China, LC AS term.

A Chinese producer commented, “Upstream costs continue to soften amid slow restocking from converters. With the recent implementation of 5 per cent import duty on Chinese PET to Indonesia, situation might become more challenging in the near term.”

In fact, both PTA and MEG costs based on CFR China term fell $10/ton and $20/ton respectively on Wednesday and industry sources are seeing further reduction in the immediate term. Another producer added, “PET offers in domestic China market has softened by additional CNY200-300/ton ($29-44/ton) week on week basis. If the upstream costs remain weak in the near term, we think further discount is possible in both local and export market.”