Chinese suppliers lifted local and export PET prices

Couple of Chinese suppliers reportedly lifted export PET offers by $20/ton week on week basis to $930-940/ton FOB China, LC AS term, which sources attributed to tightening supply and high upstream costs.

A producer commented, “We started seeing better demand from overseas market which comes as a surprise to us since Indonesia and Malaysia are in the fasting month while the Eid al-Fitr holiday is near. At the meantime, we also managed to conclude a good number of deals in local ground.” The source also reported to have implemented CNY200/ton ($29/ton) hike for domestic offers.

It is the summer season in the Northern Hemisphere at the moment, which stimulate demand from the beverage sector. “And we think the current market condition might persist until July,” another producer added.

Besides, MEG cost based on CFR China term hit above the $800/ton threshold for the first time since mid March on tightening supply, stemming from a series of plant shutdown. This plays an important role in supporting firmer trend in the downstream PET market.