After a rebound, the Southeast Asian PET market becomes mixed

The Southeast Asian PET bottle market regains some strength during late November after eleven weeks of steep sliding. Just when players started to believe that market has hit the bottom, Chinese sellers announce a mixed price list this week, casting doubt onto the sustainability of the current firming trend.

In fact, a Chinese producer decided to step back on PET bottle offers by $40/ton week on week to $1110/ton CIF Indonesia, LC AS term while most other suppliers are keeping prices unchanged. Speculations are pouring in highlighting a possibility that sellers are still under inventories pressure as the year-end approaches nearer.

“We have purchased sufficiently during the end of November and currently prefer to wait and see on the sideline. The plunge in crude oil prices might drag MEG and PTA costs lower in the near term. We are not confident in the near-term outlook,” a regional buyer commented. 

Meanwhile, an international trader lifted offers for Chinese PET bottle to Vietnam by $10/ton to $1130-1135/ton CIF, LC AS. The source informed that no deals have been achieved at the latest price levels. “Customers are too conservative. Sales have been really slow these two weeks. We become highly concerned about the outlook in January,” the trader added.

To alleviate the impact of lower demand and crude oil prices, China Resources Chemical Holdings has shut its 600,000 ton/year PET plant in Changzhou this week for 40 days maintenance. Jiangyin Chengxing Industrial Group is also planning a month-long maintenance schedule at its 600,000 tons/year PET unit in late January. 

At the time this report is published, import PET bottle to Southeast Asia stands at $1090-1250/ton, CIF, LC AS.