NEWS

Global PET markets sustain bullish run on tightness, healthy demand

8 May, 2018


The bullish run of PET prices across major global markets has remained in place so far this week on the back of healthy seasonal demand as well as ongoing supply limitations. The strong energy complex is also adding to the globally firming trend, with the US oil benchmark hitting above the $70/barrel level for the first time since November 2014 during intraday sessions on May 4.

Export PET offers from China have sustained their bullish trend for the sixth consecutive week in line with several producers’ additional hike requests based on their lack of prompt supplies. Data from ChemOrbis Price Index reveal that PET prices on FOB China basis have recently reached their four-and-a-half-year high on weekly average, hitting the $1400/ton FOB threshold for the first time since September 2013.

A South Korean producer also lifted its export PET offers by $30/ton last week, noting, “Demand in our local market is strong, hence we are only able to allocate a limited quota to export markets for June.”

In Southeast Asia, import PET prices also recorded a fresh round of hikes due to tight supplies and improving seasonal demand. A Vietnamese trader received $15/ton higher offers for Chinese PET while an Indonesian trader opined, “We expect PET prices to rise further given better demand amidst the high season.”

Both local and import PET prices in Turkey have been tracking a bullish trend since mid-April, with the weekly average of prices recently reaching their highest levels since February 2014 and June 2014, respectively, according to data from ChemOrbis Price Index. Two domestic producers raised their list prices for three times in the past one month. “We are firm on our offers as supplies are tight. The uptrend is not likely to fade in June as well given the fact that shipments are for July onwards. We might revise our offers further up in the coming days,” one of them said.

In Europe, the firming trend has also been sustained so far, with local prices recording sharp gains of €50-70/ton on a weekly basis to move beyond the €1200/ton FD threshold. The recent increases were attributed to tight availability caused by the lack of PTA supply from BP in Belgium and PKN Orlen in Poland and improving demand thanks to the high season. A distributor in Germany said, “We have received more requests from buyers recently as they are rather concerned for their monthly purchases now, considering that the spot market is extremely tight. We don’t think that the current bullish trend will see a halt soon.”

In Egypt, import PET prices continued to climb on weekly basis given restricted supplies. Similarly, local offers jumped to more than one-year high, according to data from ChemOrbis Price Index. “Sellers maintain their firm stance given low inventories as well as delayed deliveries. Demand is good in China. However, inquiries are limited in Egypt given high replenishment costs,” noted a trader.

 

Contributed by:
https://www.chemorbis.com/en/

CLICK HERE TO SECURE YOUR SEAT NOW

REGISTER NOW

TALK TO US

ADDRESS

Malaysian Petrochemicals Association (MPA)
Wisma FMM, No. 3, Persiaran Dagang, PJU 9,
Bandar Sri Damansara, 52200 Kuala Lumpur

Tel: +603-2171 3456 / +603-2171 3521
Fax: 03-2171-3535

Facebook Icon Youtube Icon

ENQUIRY FORM