Change of trade flow for bottle grade India related.
Export home textile demand recovering
Discussion in the Asian bottle grade polyethylene terephthalate market remained thin, amid weak demand globally.
After India’s proposal on the anti-dumping duty of bottle grade PET
for China exporters, some sources said the trade flow is likely to change.
India is a net exporter of bottle-grade PET. Bottle and pre-form manufacturers, however, imported small quantities of PET resin from China as it worked out cheaper, and they were able to avail longer credit lines for imports.
According to market estimates, India’s annual bottle-grade PET production capacity is 1.4-1.5 million mt, of which only about 900,000 mt is consumed domestically and the rest is exported.
“Now that imports from China will stop, other exporters who want to capture the Indian market would have an opportunity to offer more competitive prices,” the official said.
In the spot market, a market source was worried that demand from Japan would remain weak amid new COVID-19 cases.
“We expect the temperature in Japan remain hot in September, as a result, the demand would be healthy, however, amid new cases reported, we worry the September demand would remain weak,” said a producer.
China’s domestic yarn and fiber grade PET prices were trading downward amid high inventory for producers.
The export demand was heard recovering, especially for home textile grade.
“The home textile demand is healthy, like bedsheets, and demand from mid-east countries also picking up,” a market source said.
The downstream textile making plants are lowering their inventory amid recovering export demand.
Asian PET Weekly Rationale
FOB Northeast Asia PET was assessed flat week on week at $655/mt Aug. 19, below tradable indication from a producer at $745/mt FOB Taiwan and $660-$680/mt FOB China, in absence of firm bid or buying indication.
FOB Southeast Asia PET was assessed unchanged week on week at $640/mt over the same period, amid limited discussion.
China prompt domestic POY150D/48F was assessed Yuan 96/mt lower at Yuan 5,242/mt ex-works, reflecting a tradable discussion heard at Yuan 5,230-5,255/mt.
China prompt domestic DTY150D was assessed unchanged at Yuan 6,600/mt ex-works, reflecting a tradable discussion heard at Yuan 6,590-6,700/mt.
China prompt domestic FDY150D/96F was assessed Yuan 75/mt down at Yuan 5,750/mt ex-works, reflecting a tradable discussions heard at Yuan 5,750/mt.
China prompt domestic PSF was assessed Yuan 44/mt lower at Yuan 5,466/mt ex-works, reflecting a tradable discussion heard at Yuan 5,450-5,480/mt.
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