China’s PET markets extend rebound on firmer costs
After shifting direction from their two-year lows over the past week, local and export PET markets in China have continued their rebound during the final days of June in line with higher upstream costs.
The recent gains in crude oil futures and improving demand were also cited as other supportive factors.
Petrotahlil:Chinese sellers maintain firm stance on local and export offers
Several Chinese PET producers have lifted their offers to export outlets further by $10-30/ton this week while applying increases of up to around CNY300-400/ton ($44-58/ton) on their local market.
PET prices chase upstream costs higher
In Asia, spot MEG and PTA prices on CFR China basis are nowadays indicating nearly $20/ton increases when compared to mid-June levels.
Spot paraxylene (PX) prices in Asia, meanwhile, have slightly firmed up after reaching their lowest levels since late July 2017.
Crude oil futures add to firming
ChemOrbis data also revealed that WTIand Brent crude oil futures have recently reached their highest levels since late Mary following the recent rally .
Demand shows an improvement
A Chinese trader opined, “Prices have continued to firm up this week as demand has picked up recently after the news that China and the US will resume trade talks at the G20 meeting. Plus, higher upstream costs have also given an upper hand to the sellers.”
Eyes on outcome of G20 summit
The G20 summit will be held in Osaka, Japan on June 28-29. Players mostly think that the outcome of the summit will have an influence on polymer prices as it takes the prolonged trade war between China and the US center stage.
US President Donald Trump and Chinese leader Xi Jinping will have a meeting during the summit, which was speculated as a factor that may ease the earlier tensions.
