◾Berish Q4 outlook for fiber grade.
◾Bottle grade forward arrival discussion started.
Petrotahlil - China domestic yarn and fiber grade polyethylene terephthalate prices were higher by Yuan 82-175/mt on July 29, amid recovering demand from textile sector.
Some market sources are holding bearish sentiment, despite the recovery of price, amid high polyester operation rate, and new production capacity coming up in the fourth quarter of 2020.
“Considering current polyester operation rate and demand, the inventory level for both producers and buyers are building up, I can’t see strong support from the supply side,” said a trader.
“In addition, there are a number of new upstream PTA and MEG production capacity coming online in Q4 this year, supply considered to be ample,” the trader added.
The China polyester plant operation rate was heard up by 0.51% at 87.61% on July 29, while the operation rate of downstream textile making plants was heard up by 4% at 55.5%. The sale/production ratios were heard lowered by 9.5% on POY day-on-day at 34.7%, according to a market source.
In the bottle chip market, the demand remains sluggish as most of the export volume slows down amid limited outdoor activities due to COVID-19.
However, the forward arrival discussions for drinking water bottles have emerged.
“The discussion for forwarding 2021 arrival cargoes were brought up by drinking water buyers from Arica and South America countries,”said a producer.
Upstream, PTA CFR China price was assessed up by $2/mt week on week at $437/mt, MEG CFR China price was assessed higher by $11/mt for the same period of time at $437/mt, Platts data showed.
Platts Asian PET Weekly Rationale
FOB Northeast Asia PET was assessed unchanged week on week at $675/mt on July 29, in line with tradable heard at $650-$690/mt FOB China, amid limited discussion.
FOB Southeast Asia PET was assessed flat week on week at $660/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 175/mt higher at Yuan 4,995/mt ex-works, reflecting a tradable discussions heard at Yuan 4,985-5,005/mt.
China prompt domestic DTY150D was assessed Yuan 137/mt up at Yuan 6,420/mt ex-works, reflecting a tradable discussions heard at Yuan 6,340-6,500/mt.
China prompt domestic FDY150D/96F was assessed Yuan 150/mt higher at Yuan 5,565/mt ex-works, reflecting a tradable discussions heard heard at Yuan 5,525-5,600/mt.
China prompt domestic PSF was assessed Yuan 82/mt up at Yuan 5,352/mt ex-works, reflecting a tradable discussions heard heard at Yuan 5,350-5,353/mt.
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