Firmer PET offers meet buyer resistance

After several major Chinese PET makers adjusted their offers up $40-60/t compared to last week claiming firmer upstream costs and bright demand prospect to be the support, market appears to be not so excited on the new price level.

A Chinese trader offers their cargoes at $880-890/t FOB China term said, “We think the market is a little over-speeding, hence bump into buyer resistance. We could not manage to close any deal at the new price level today and we think buyers needs sometime to accept the increases.”

Another Chinese producer whose offers stand at $900/t FOB China term added, “Buyers are resisting our new offers but we plan to stay firm on this cargoes as we expect firmer upstream costs would eventually support the whole market. Moreover, the peak season for PET bottle is around the corner, which give us more confidence in the near term outlook.”

From the buyer side, a PET bottle converter in Malaysia said, “We are currently having two months of inventory in hand, therefore we are not in rush to make additional purchases. It is the peak season for PET bottle, yet demand for our end product has not shown much improvement. We would like to monitor the market further before making decision.” Meanwhile, PET converters in China also reported purchasing on need basis and not planning for fresh replenishment this week considering too large hike request from sellers.

Please refer to the Daily Price section on www.commoplast.com for detailed import and local prices to/in China and Southeast Asia market.