Petrotahlil :PET prices both in Asia and Europe have witnessed a renewed weakness recently. The low season seems to have outpaced the hike attempts of sellers to pull the market up from near 3-year lows.
Small hikes sought to halt downturn in Europe
Across Europe, sellers initially sought rollovers to hikes albeit in small amounts for October. However, these hikes have not found acceptance among market players and the PET market has mostly stabilized at its lowest level since December 2016 in Italy.
These hike requests, in the first place, emerged in an attempt to bring an end to the downtrend in Europe, according to some players.
European PET markets largely weakening for more than a year
This is due to the fact that local PET prices in Italy have been on a constant downturn since March 2019. If the period from January to March 2019, when prices faced an insignificant recovery, is disregarded, the duration of the downslide dates even further back to August 2018, ChemOrbis Price Index suggests.
Gains in Asia’s PET markets turned out to be short-lived
Asian PET markets paint a similar picture, with Chinese suppliers returning from the holiday with further price drops. Flimsy demand amid the seasonal lull predominantly weighs on the PET market, apart from the weaker energy markets.
Back in mid-September, PET prices rose by 4% upon the attacks on Saudi Aramco’s oil facilities. However, this uptick did not prove to be sustainable as the market erased half of its gains in the following week, right before the holiday.
China’s export market back down to almost 3-year low
This week, renewed discounts in export PET prices from China sent the market back to early September levels and fully cancelled the previous gains.
Currently, China’s export PET market has fallen back to the lowest levels since November 2016 on a weekly average, ChemOrbis Price Index reveals.
Follow us on twitter @petrotahlil