Export Chinese PET continue to move lower

Couple of Chinese producers this week reported to have down adjusted their export offers for PET by another $10-20/ton from previous week to reach $970-980/ton FOB China, LC AS term. Persistent weak demand is blamed for the reduction.

A Chinese producer commented, “Demand in local market has not shown any significant improvement though it is normally the high demand season at this point of the year. On the other hand, we think room for further reduction is very limited given the recent gain in MEG costs.”

In fact, MEG costs based on CFR China term moved back to the above $800/ton zone after a brief drop to $780/ton level late last week. It is expected that MEG costs might hold firm in the near term on restocking activities from Chinese buyers.