◾Downstream textile facing inventory pressure.
◾Textile making operations down to 63.4%.
Petrotahlil - China domestic yarn and fiber grade polyethylene terephthalate prices were assessed lower by Yuan 75-185/mt amid sluggish restocking need from downstream textile sector.
“After a huge amount of yarn and fiber grades sold to downstream 1-2 weeks ago, the inventory for producers are quite low, or negative for some producers, on the other hand, the inventory pressure was transferred to downstream, while the overseas export orders still yet to emerge,” said a market source.
Normally PET producers will have inventory for one week. However, at the stage, a hand of producers holding inventory less than such level, said a source.
The source said that some shutdown in downstream textile sectors is expected during the three-day national holiday in China next week on account of Dragon Boat Festival.
On the other hand, renewed pandemic worries following fresh COVID-19 cases in Beijing weighed on the PET sector.
Overall textile making operation rate was heard down by 1.3% week-on-week to 63.4%, and the sale/production ratio was heard at 40-67% on June 17.
Upstream, PTA CFR China price was assessed up $2/mt week on week at $435/mt, MEG CFR China price was assessed lower $12/mt for the same period at $415/mt, Platts data showed.
Platts Asian PET Weekly Rationale
FOB Northeast Asia PET was assessed unchanged week-on-week at $695/mt June 17, below tradable from producer at $700-$720/mt FOB China and offer at $720-$730/mt FOB Korea.
FOB Southeast Asia PET was assessed flat week-on-week at $680/mt over the same period, in line with same trend with CFR Northeast Asia amid limited discussion.
China prompt domestic POY150D/48F was assessed Yuan 112/mt lower at Yuan 5,638/mt ex-works, reflecting a tradable discussions heard at Yuan 5,600-5,675/mt.
China prompt domestic DTY150D was assessed Yuan 75/mt down the at Yuan 7,175/mt ex-works, reflecting a tradable discussions heard at Yuan 7,100-7,250/mt.
China prompt domestic FDY150D/96F was assessed Yuan 185/mt lower at Yuan 6,265/mt ex-works, reflecting a tradable discussions heard heard at Yuan 6,180-6,350/mt.
China prompt domestic PSF was assessed Yuan 119/mt down at Yuan 5,858/mt ex-works, reflecting a tradable discussions heard heard at Yuan 5,837-5,880/mt.