According to Polymerupdate.com, prices for bottle-grade PET in Asia last week ended down. Producers are said to still be struggling to find buyers, most of whom were keeping their distances from purchases on the back of last weeks tumble in upstream MEG rates. PTA prices in the region quoted stable.
A PET buyer in conversation with a Polymerupdate team member said, We are deliberately avoiding purchases in the hope that upstream MEG rates further decline. This will allow us to further negotiate price discounts in PET bottle grade in the weeks ahead. We do know that currently there is a strong bearish trend in PET prices in the region and producers are unable to achieve their targeted rates. Many have dropped their offers but have failed to enthuse buyers despite the reduction.
When asked what his price target for PET would be if he was pushed to bid, the buyer said his firm would put out bids at $1330/tonne FOB Korea against offers at $1340/tonne FOB. Meanwhile, demand for PET bottle-grade from buyers in the Middle East and from Africa was heard to be good. Asian producers of PET threatened that if confronted with a very bearish regional trend, they may divert their PET quantities to these areas.