Chinese makers lifted export PET offers on strong upstream costs

As upstream MEG and PTA costs remain firm on the back of surging energy complex, Chinese producers continue to implement hike on export PET offers this week. Latest offers indicated $20-30/ton increased to $1030-1040/ton FOB China, LC AS term.

Demand is reported to be mediocre overseas, especially in Southeast Asia with deals reported at $15-20/ton discount from initial price list. A Chinese trader informed, “Market is leveraging on the energy values, however, demand from the beverage sector holds a little lethargic. We are not having inventories pressure at the moment, hence might continue keeping firm stance.”

Asking about the recent antidumping investigation initiated by the USA Commerce Department on import PET from China and four other countries, suppliers are sharing a similar respond, saying, “Export market might slowly become difficult with more country initiated/implemented antidumping investigation on Chinese PET, including Indonesia and Japan. We are hoping that the recent ban in import plastic scrap would also boost demand for prime grade PET, which create more market in local ground.”