Chinese PET producers cut local and export offers

It is reported that couple of Chinese suppliers have stepped back on export offers for PET this week after heavy attempt to maintain prices stable on the back of strong upstream costs. Latest offers stand at $910/ton FOB China, LC AS term, down $10-20/ton from last week.

A seller commented, “Our customers in Southeast Asia are not interested in making replenishment amid traditional slow season across Thailand, Indonesia and Malaysia. Even with the reduction, we are not able to attract satisfactory number of sales. It is the summer season in the Northern Hemisphere, yet the demand condition is rather disappointed.”

Indonesia might delay the antidumping investigation on import Chinese PET till end of 2017 and the country has imposed a temporarily import tariff of 5 per cent on this origin in March. This was expected to impact the demand, however, price competitiveness is still helping Chinese sellers to move cargoes here. For the first four months of the year, Indonesia, Philippines and Malaysia remain the largest export destination for Chinese PET, data showed.

Meanwhile, domestic PET market in China also softened by CNY100-200/ton ($15-29/ton) from last week. A market source added, “A good thing is that the on going environmental compliance inspection has forced many recycle businesses to shutdown, boosting the need for prime grade cargoes. This could create a brighter prospect for longer term. At the moment, market is arrested by the new capacities.”