After witnessing short-lived losses in the midst of the disappointing post-Chinese New Year holiday demand, PET markets across Asia have mostly moved up this week on the back of firmer upstream costs and the approaching high season in the Northern Hemisphere.
PET markets start March on firm footing
ChemOrbis Price Wizard shows that the weekly average of China’s export and local PET markets along with Southeast Asia’s import PET markets have firmed up in the first week of March following a temporary and slight softening.
China’s export PET market back above $1100 after almost 3 months
PET bottle offers above the $1100/ton FOB China threshold have appeared in the market this week as sellers renewed their confidence with support from firmer upstream costs. Mid-December 2018 was the last time offers above this level were reported.
Firming reflected on local PET prices in China
Apart from export offers, local PET offers in China have also witnessed increases during the first days of March. A Chinese producer lifted its offers by CNY100/ton ($15/ton) this week after keeping them stable for three weeks, citing firmer costs.
SEA’s import PET market follows China firmer
The firming trend in the neighboring China market has found reflection on Southeast Asia’s import PET market, with prices posting a $15/ton increase from last week.
Higher costs prop up PET prices
In Asia, spot MEG and PTA prices on CFR China basis have posted respective increases of around $15/ton and $25/ton on the week.
ChemOrbis Price Wizard also suggests that spot paraxlyene prices on FOB Korea basis are hovering around their highest levels since mid-November while both global oil benchmarks are moving back up following last week’s slight softening.
Approaching high season boosts demand
A seller commented, “PET prices have moved higher given firmer raw material costs while demand has also improved. We expect to see better buying interest in the remaining part of March as the high season is about to start.”
Export PET offers from S. Korea maintain stability
A South Korean producer elected to keep its export PET offers to China and Southeast Asia steady for the third consecutive week.