Polyethylene terephthalate buyers in Asia have slashed purchase volumes despite cooling PET prices in the region after a recent surge, as they expect prices to fall further, as per Platts.
PET prices started trending lower in the past two weeks on lower feedstock costs, with FOB Northeast Asia assessed at US$1670/mt on Wednesday, down US$45/mt week on week, while FOB SEA prices were assessed at US$1690/mt, down US$50/mt over the same period. Based on the latest feedstock prices, the breakeven price for PET is estimated at US$1613.24/mt, down US$110.56/mt from last week. On Wednesday, CFR China monoethylene glycol was assessed at US$1212/mt, down US$108/mt week on week, while CFR China purified terephthalic acid was assessed at US$1238/mt, down US$52/mt over the same period.
The dip in the past weeks comes after five consecutive weeks of increasing prices.
Buyers have adopted a wait and watch policy or are buying limited volumes to meet immediate requirements, or breaking down their demand into smaller batches in the belief that prices will fall in the short term.