Cost-driven hikes keep Asian PET bottle prices on uptrend for two weeks

by Pınar Polat - ppolat@chemorbis.com

PET bottle prices across Asia have been gaining ground for the past two weeks, mainly driven by higher upstream values. Some players have reported signals of a slight recovery in demand, which has also reinforced firmer sentiment.
ChemOrbis Price Index suggests that the weekly averages of FOB China/South Korea and CIF SEA prices have gained $10-30/ton during the recent uptrend, erasing some of the losses recorded during a downward trend that lasted for three steady weeks.
The weekly averages are currently standing at $1000/ton CIF SEA, $980/ton FOB Korea, and $960/ton for FOB China, meanwhile.
Upstream values firmer
ChemOrbis Price Wizard data show an increase of $25/ton in spot PX spot prices, reaching $1050/ton on a CFR China basis. PTA and MEG spot prices hovered at last week`s levels of $760/ton and $525/ton, respectively, both on the same terms.
China local demand fares better than exports
A Chinese trader raised their FOB offers for another week, saying, [We have raised our export offers further amid the ongoing rally of key feedstocks like PX, PTA, and MEG. But in terms of demand, domestic sales have been better than exports."
The prices were assessed unchanged from the previous week at CNY7100-7250/ton ($901-930/ton excluding VAT) ex-warehouse, cash.
SE Asian domestic PET players struggle with currency depreciation
While several regional producers have continued to raise their FOB offers to the region as a result of firm cost support, local PET prices have stayed mostly stable amid currency woes.
Affirming this, a South Korean producer said, [With most Southeast Asian currencies still depreciating against the US dollar, buyers are facing challenges in finding funds for their purchases."