PET prices at the lowest level last year in Southeast Asia
14 October 2014
In Southeast Asia, import PET prices have reached the minimum levels of the last 52 weeks. The falling costs of raw materials driven by lower oil prices pushed PET prices further down, while demand was moderate.
In Southeast Asia, import PET prices have reached the minimum levels of the last 52 weeks. The falling costs of raw materials driven by lower oil prices pushed PET prices further down, while demand was moderate.
NYMEX oil prices fell over $ 5 / barrel over the past week. Meanwhile, the costs of producing other raw materials continue to decline. The costs of PTA and MEG recorded large decreases compared to the beginning of October. The PTA lost $ 70 / ton and the MEG $ 80 / ton. However, these decreases are even higher than the spot market prices at the beginning of September. PTA prices indicate a decline of $ 155 / ton and those of the MEG of $ 170 / ton compared to the beginning of September. As for PX costs, these increased slightly by $ 5 / ton at the end of last week compared to early October. However, looking at the prices reported at the beginning of September, these are down by $ 175 / ton.
After bearish cost developments and weak demand, import PET prices in the SEA have fallen to last year's low levels. Furthermore, plastic futures prices have added to the bearish trend.
On a weekly basis, import PET prices declined by $ 10 / ton on the highs, but recorded a fall of $ 60 / ton on the CIF SEA, cash minimum.
A trader in Indonesia commented, "During the first week of October, we saw lower prices. However, we still had to reduce our offers by $ 20-30 / ton in the last week to offset weak demand. The market is rather weak and buyers are waiting for new discounts. The import offers from China are really competitive and local market prices are not in a position to compete ".
To follow the weekly developments in the SEA PET market, click Polymer Digest PET SEA / India (reserved for subscribers)
A Malaysian converter received falling prices of MYR50-100 / ton ($ 15-30 / ton) in the local market. "Despite the decreases, we do not plan to make new purchases because we had already purchased import cargoes from China before the National Day party and we still have stocks. However, the demand for finished products is good. However, buyers are at the window, given the recent rebates ", he added.
One Thai producer confirmed lowering its prices by THB500-1000 / ton ($ 15-30 / ton), in line with falling raw material costs. He noted, "We are under pressure from costs and falling import prices. We must therefore lower prices to remain competitive. The only positive aspect is that the climate is still mild in the SEA, unlike the northern hemisphere, so the markets for finished products are not going badly. Buyers do not have high inventories but continue to remain cautious, to observe the trend of raw materials".
A Chinese producer offering in Thailand, Vietnam and Indonesia has reduced prices by $ 20 / ton before National Day. The producer commented "The costs of raw materials are decreasing, as well as the prices of PTA futures and these factors are creating downward pressure on PET prices".
Article taken from www.chemorbis.com