Chinese PET surged in Vietnam; further increases might emerge next week

Couple of Chinese makers reportedly lifted import PET bottle offers to Vietnam, in line with the stronger upstream PTA and MEG costs. Buyers did not respond positively toward the hike claiming comfortable inventories from the previous purchases while many fear that the current upward momentum might prove short lived.

At the time this report is published, Chinese PET bottle grade based on CIF Vietnam stand in the range $1270-1320/ton, about $20/ton higher week-on-week.

“We have only been able to conclude two containers of material at the latest prices, mostly thanks to the lack of recycle material in domestic ground. Other buyers are rather reluctant,” a trader informed.

Several other suppliers are discussing a possibility that the current firming trend would extent into the coming week considering the resilient upstream costs and brighter demand prospect ahead of the traditional high demand season.

“We remain cautious for now. Market is under a lot of pressure from upgraded trade war between China and the USA that might hamper that textile industry while local currencies are depreciating sharply against the US dollar,” a buyer added. 

Couple of other converters is seeing better local supply following the successful start up at Far Eastern Petrochemical Vietnam, which potentially limited the uptrend in import ground.