Chinese PET suppliers stepped back on new offers to Vietnam amid stiff resistance

Under tremendous upward pressure from the strong upstream costs, Chinese suppliers are forced to step back on PET bottle offers to Vietnam by $10/ton from late last week after bumping into stiff market resistance.

Latest offers stand at $1360-1365/ton CIF Vietnam, LC AS term.

“These offers are so lack of competitiveness. Non-dutiable cargoes are rather unchanged week-on-week and therefore, we did not proceed with the new buy,” a converter informed, adding that end product demand is not strong due to the monsoon season.

Meanwhile, suppliers claimed to have little choice but to hold prices firm to protect profit margins. Looking at the upstream costs, paraxylene (PX) based on CFR Taiwan/China spike $56/ton or 4.1% in one single trading day on Tuesday to multi-year high level at $1344/ton. PTA based on CFR China gained $60/ton in the same trading day thanks to aggressive purchasing interest in China.