In China, local PET prices stabilized over the past week following eight consecutive weeks of falling prices, as per ChemOrbis. Players pointed to improved demand within the country and reduced volatility in the new PTA and MEG feedstock markets as the main reasons for the leveling off in prices. A large manufacturer in the beverage sector is reported to have purchased some materials at prices close to the lower end of the overall local offer range. “We do not believe that local prices are likely to witness any further decreases, so we purchased some material after negotiating for some discounts with our suppliers,” commented the converter. “We are mulling an increase in our operating rates in anticipation of seeing stronger demand ahead of the Chinese New Year holidays in late January,” the buyer added. A converter manufacturing bottles for the medical sector also reported that they purchased some material from the local market from their regular suppliers, adding that local PET prices were mostly stable over the past week. “We are maintaining our stocks at normal levels for now and we do not believe that local PET prices will witness any further decreases over the near term,” reported the buyer.
Sellers offering Chinese PET also reported seeing better buying interest from the local market over the past week, although they acknowledged that demand from their overseas customers remains disappointing. A Chinese producer reported that, “we left our prices to the local market unchanged over the past week and are not planning to adjust our prices for now as we are enjoying smooth sales in the domestic market.”
Another domestic producer also reported seeing better demand from the local market these days, adding that they have managed to conclude some deals for small tonnages of material at prices close to their current price levels. A distributor stated that they might consider replenishing their stocks over the near term as they are seeing healthy demand from the local market these days. Another distributor commented, “we are seeing better demand from the domestic market these days and are not willing to give any discounts on our prices for now.”