Chinese players: Reduced supply supports firmer PET prices

Players in China are reporting firmer PET prices this week in both local and export market with the support from reduced supply level after a round of active pre-Chinese New Year replenishment past few days. Lower operating rate at major PET makers also contribute to the tightening supply condition, sources said.

A PET bottle maker in Ningbo commented, “We received new offer from local supplier with CNY CNY100-150/t ($15-23/t) higher than last week, however, we have already purchased sufficient material in the past few days. Both of Zhejiang Wankai and Hainan Yisheng are having very tight supply for now but we think the condition will be loosened after Chinese New Year, as these plants are planning to push to full rate through out the holidays. We will off two weeks for the lunar New Year starting 4 Feb.”

An international trader said, “Most of the PET plant in China are running at about 80% or lower capacity, however, some of our principals are trying to increase the operating rate now. Recently we are seeing good demand in Myanmar market and expect to see better buying interest after the holidays as March to May period is the traditionally peak season for PET bottle application.”

A Chinese PET producer reportedly lifted their offers by $20/t compared to last week to reach $780/t FOB China term. Source from the producer said, “Delivery in local market will be suspended next week as roads are closed for Chinese New Year, therefore we are trying to ship out as many cargoes as possible by this week. We are not having much quantity at the moment and we will operate during the holidays.”

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