Buyers stay on sidelines expecting prices to fall
Asian bottle-grade polyethylene terephthalate prices fell $15/mt from last Friday to be assessed at $1,080/mt FOB Northeast Asia and $1,140/mt Southeast Asia Friday, amid tepid buying appetite. The actual demand was healthy, but buyers “delayed their purchases” expecting prices to fall amid drops in feedstock prices, a producer said. Feedstock purified terephthalic acid tumbled $15/mt to $825/mt CFR China, while monoethylene glycol fell $10/mt to $582/mt CFR China over the same period. In China, PET supply remained tight as it was the peak season with many sellers sold out for May. China domestic PET was heard tradable at around Yuan 8,200/mt, which was equivalent to $1,078/mt, similar to FOB Northeast Asia marker, a source said. Spot trading discussions were limited in other Northeast Asian regions as well, with few deals concluded, a trader said. In Thailand, the market was quiet for both exports and domestic sales, with small volumes traded at Baht 37/kg domestically, which equated to $1,159/mt, a producer said. In the polyester sector, the sales-toproduction ratio was boosted up to 120% in average over Friday- Friday in China. This was not the result of firmer demand in the downstream textile sector, but a major discount given to end-users to clear finished goods inventory, a polyester producer said. China domestic polyester prices fell Yuan 160-470/mt week on week for the four mainstream yarn and fiber grades Friday, including Partially Oriented Yarn, Draw Textured Yarn, Fully Drawn Yarn and Polyester Staple Fiber, S&P Global data showed. Some downstream draw- texturing plants would shut operations on May 1 in response to weak demand, two sources said. In plant news, there were talks that China’s Jiangyin Chengxing Industrial Group would bring online its 600,000 mt/year No. 2 PET bottle-grade unit by end April, yet a company source said Friday that the new plant had not been commissioned yet, without disclosing the exact startup timeline.
FOB Northeast Asia PET was assessed down $15/mt from last Friday at $1,080/mt on Friday, reflecting deals and tradable discussion heard at this level, between bids and offers heard at $1,050/ mt and $1085-1100/mt. FOB Southeast Asia PET was assessed down $15/mt week on week at $1,140/mt over the same period, tracking Northeast Asia marker amid scarce spot trades and bearish sentiment. China prompt domestic POY150D/48F price was assessed down Yuan 400/mt at Yuan 8,500/mt over the same period, reflecting tradable discussion heard at this level. China prompt domestic DTY150D/48F price was assessed down Yuan 190/mt at Yuan 10,100/mt over the same period, reflecting tradable discussion heard at this level. China prompt domestic FDY150D/96F price was assessed down Yuan 470/mt at Yuan 8,730/mt over the same period, reflecting tradable discussion heard at this level. China prompt domestic PSF 1.4D*38mm price was assessed down Yuan 160/mt at Yuan 8,640/mt over the same period, reflecting tradable discussion heard at this level.