Export PET from China gains ground, sustainability in question

According to market sources, couple of major PET producers in China have lifted their export offers to international markets by approximate $10-20/ton compared to last week on firming upstream costs and healthy demand in local market.

A producer offered at $860/ton FOB China, LC AS term informed, “There are several PTA plants undertake maintenance shutdown at the moment, which pushes costs up. Meanwhile, our regular customers in domestic market are restocking after returned from the long National Day holidays.”

However, market response in Southeast Asia region is not as positive as expected, especially in Indonesia where weak demand continues to cause weekly reduction in the past month. Buyers are generally not confident about the sustainability of the firming trend with a market source said, “The winter is just around the corner and therefore downstream demand for beverage bottles in the Northern Hemisphere might reduce. Pressure is there to remain.”

Export PET offers from China currently stand at $860/ton FOB China, LC AS term.