PET prices in Asia plummet ahead of the National Day holiday

In Asia, export PET prices continued to plummet amid the looming week long National Day holiday in China that has alos affected buyers' purchases along with the generally thin end product demand and bearish upstream costs, as per ChemOrbis. In the spot market, Asian MEG offers were unchanged on a week over week basis but prices are down by US$75/ton when compared to the beginning of September. For PTA, spot prices are US$10/ton softer on the week and they are US$85/ton lower when compared to the start of September. However, PX prices gained US$30/ton on a week over week basis but they remained US$25/ton below the early September levels despite the recent recovery. Looking at export PET prices in Asia, they are US$20/ton lower both on FOB China and FOB South Korea basis. A Chinese producer reported that they lowered their prices by US$10-20/ton on the week. "Overall buying interest remains stagnant while buyers expect further decreases on prices ahead of the approaching National Day holiday. Plus, lower PTA costs are another pressure point on the PET market," he further added. A trader in Shanghai commented, "Due to the bearish upstream costs, the PET market outlook is still weak. Buyers continue to meet their immediate needs as they prefer to be cautious ahead of the approaching holiday. In fact, buyers are in need of replenishing their stocks but continuously decreasing prices are preventing them from doing so since they do not think that prices have hit the bottom yet. We are not very optimistic about the near term outlook." A different Chinese PET producer also cut their prices by US$10-20/ton and added that they managed to conclude some small deals following their cuts. "However, we hear prices below the US$1200/ton threshold in the market. We do not think that these levels are widespread as we believe that they are given by sellers who are facing serious sales pressure ahead of the National Day holiday," he further added. Meanwhile, Asian PET prices are lower in Turkey and Egypt's import markets too, while players operating in these markets are shying away from purchases given the approaching religious holiday that will be celebrated at the beginning of October. Muslim markets will be away for holiday at the beginning of October, like China, only for a shorter time. In Turkey, traders complained about stagnant demand as they struggled to conclude deals even after the recent drops. Meanwhile, some buyers are claiming that $20-30/ton discounts are obtainable over the initially offered prices if they are to give serious counter bids with the intention of purchasing. Asian import PET prices appear to have moved below the $1300/ton threshold this past week. According to ChemOrbis, In Egypt, Far Eastern import PET prices also broke the US$1300/ton threshold as they recorded US$20/ton decreases on a week over week basis. A trader commented, "The approaching Eid holiday is pushing buyers away from the market while overall supply levels are ample. These circumstances do not support any price hikes."