21 May, 2018
China’s PET market had been steadily climbing since early April on the back of tight supplies, yet the rally has stalled over the past week as a growing number of buyers became uninterested in making fresh purchases at the prevailing offer levels which indicate multi-year highs.
According to data from ChemOrbis Price Index, the weekly averages of PET prices in China reached their highest levels since September 2013 before they mostly stabilized last week. During the latest upward trend, local PET prices posted a cumulative increase of around $260-265/ton as data reveal.
A source from a Chinese PET producer commented, “We are still feeling free from any sales pressure as supply concerns remain in place. However, we prefer to keep our offers stable for now as rapidly increasing offers have slightly hampered buying interest. The near term outlook is still firm given the ongoing high season, tight availability as well as strong upstream costs.”
A trader operating in Shanghai also affirmed that the PET rally stalled, noting, “Our offers are stable on the week. Purchasing activity has slowed down when compared to the previous weeks. However, Chinese producers still have backlog orders to clear amidst the ongoing tightness, which is likely to keep the market on a firm note over the short term.”
In the meantime, PET prices retained their firming trend across other global markets. Traders reported that offers from Taiwan were up by $40/ton on the week while a South Korean producer concluded deals with a visible hike of $60/ton last week. In Southeast Asia, the import PET market surged to its highest level since October 2013. In Europe, tight supplies and improving demand sent spot PET prices to their highest levels in almost five years.