Chinese PET continues softening in SEA despite recovery in upstream costs

Fresh import PET offers originated from China emerge in Southeast Asia this week mostly at lower levels regardless of the recovery in the upstream market. The latest price range for this origin stand at $1295-1320/ton CIF, LC AS and yet, purchasing interest seems lethargic.

“We are willing to sell below the $1300/ton threshold to Indonesia and Malaysia if the customers are serious about buying,” a regional distributor offered at $1300-1320/ton for Chinese cargoes said. 

Indonesian buyers become reluctant to buy imports at the current exchange rate. “In the meantime, demand is also slower. Sales have been steadily going down since we attempted to lift offers for end product,” a beverage bottle maker added.

In the upstream market, upstream PX market returned to above the $1300/ton threshold after a brief dive during the third week of September while PTA holds relatively steady. However, such recovery does not seem sufficient in supporting the downstream PET market. 

Buyers across the region seem very conservative about making large purchases, partially due to comfortable inventories on hand. “We are waiting for additional price cut to make larger buy in preparation for Lunar New Year demand,” a Vietnamese buyer informed.