Bullish trend loses pace in global PET markets in March

After steady price hikes were observed on the back of firm feedstock markets during February, the bullish trend started to lose some pace across global PET markets in early March, as per ChemOrbis. Export PET prices have shown signs of stabilizing in China, while import offers posted relatively smaller increases in Turkey. In Italy, most new March PET offers were revealed with rollovers. One of the common reasons behind the mostly steady or just slightly firmer trend is the softening PTA, PX and MEG prices, especially in Asia and partially in Europe. In Asia, spot PTA prices softened by US$10/ton on CFR China basis week over week, shedding US$5/ton compared to March 1. Spot PX costs lost US$30/ton on the week but held stable compared to the start of the month. Spot MEG values were down by US$30/ton on a weekly basis and US$20/ton from early this month says ChemOrbis. Additionally, when compared to early February levels, spot PTA prices stand US$20/ton and MEG prices stand US$60/ton lower. Nonetheless, the most recent PX prices still represent a US$45/ton increase with respect to February 1. The European spot PX market has maintained its firming trend so far this month. Spot PX prices softened US$10/ton compared to the previous week, but represent a US$20/ton increase from early March. The increase amount is larger at US$35/ton from February 1. Also, March PX contracts settled up €36/ton (US$48/ton with recent parity) from February in the region. In China, softer feedstock markets combined with healthy demand created a stable market scene during the past week. Producers also cited their tight supply for their firm stance. Export prices from the country held steady on FOB China basis while offers for nearby South Korean PET were stable to US$10/ton higher based on FOB Busan, South Korea, cash week over week. “Our export business proceeded normally and we are unwilling to offer any significant discounts on our prices,” as per producers. In Turkey, the PET market followed a slightly firmer path with small increases in overall price ranges amidst a balance between still high costs and sluggish demand. “Sellers were relatively open for negotiations,” converters claimed. “Sentiment was not as strong as before despite higher PX costs as sluggish end business hampered trading activities for PET resin ahead of the high season,” sellers also confirmed. Origins including Central and South East Asian cargoes as well as Pakistani materials created an overall import PET range which was up US$20/ton on the low end and US$10/ton on the high end compared to the previous week. Far East Asian cargoes emerged in a narrow range and represented a US$10-20/ton increase. In Italy, European PET sellers started to announce their March prices at mostly flat levels month over month. No done deals were reported as of the end of last week as initial prices were found high. Spot PET demand across Europe was described as slow in general which was attributed to last month’s pre-buying and the lower priced PET imports finding their way to the north of the region. Looking ahead, a mostly steady market trend is expected to remain in place in China this week as producers are reluctant to step back from their offers in order to preserve their profit margins. Similarly, Turkish players don’t expect to see any major price changes in the near term considering still high upstream markets and sluggish demand. In Italy, although the higher March PX settlements supported sellers’ flat pricing strategy, prices are likely to continue to see resistance. “Higher prices also affect the end product demand in turn. Converters’ businesses are performing really badly,” a trader told ChemOrbis.