Weak upstream prices lead to bearish outlook.
Low demand ahead of winter season.
Petrotahlil - The China domestic yarn and fiber grade polyethylene terephthalate
market was stable to soft Oct. 28 on the back of weaker upstream
prices and a slowdown in demand.
A market source said downstream buying has slowed down in the
week started Oct. 25 as most textile producers’ inventory are at a
healthy level, with the bearish sentiment that upstream prices may fall
“Downstream not in hurry to buy polyester, with the expectation
that the price may drop more tracking weak crude, and more upstream
capacity will come online in Q4,” the source added.
A source said textile order inflows to China from overseas were still
at healthy volumes as due to the COVID-19 situation in India, textile
buyers worried that the product could not be delivered on time. As a
result, some textile orders started to transit to Chinese producers.
In the bottle chip grade PET, demand remained sluggish ahead of
the winter season, and less outdoor activity due to COVID-19.
Upstream, the PTA CFR China price was assessed down $8/mt
week on week at $440/mt, and MEG CFR China price was assessed
lower by $18/mt for the same period at $478/mt, S&P Global Platts data
Platts Asian PET Weekly Rationale
FOB Northeast Asia PET was assessed down $5/mt week on week at
$650/mt on Oct. 28, below tradable indication from a producer at
$660/mt FOB China, and weaker upstream prices in MEG and PTA
markets, in absence of firm bids.
FOB Southeast Asia PET was assessed lower $5/mt week on week at
$655/mt over the same period, tracking the same trend with FOB
Northeast Asia amid lower upstream prices.
China prompt domestic POY150D/48F was assessed Yuan 78/mt higher
at Yuan 5,515/mt ex-works, reflecting tradable discussions heard at
China prompt domestic DTY150D was assessed down Yuan 17/mt at
Yuan 7,000/mt ex-works, reflecting tradable discussions heard at Yuan
China prompt domestic FDY150D/96F was assessed Yuan 35/mt higher
at Yuan 5,725/mt ex-works, reflecting tradable discussions heard at
China prompt domestic PSF was assessed down Yuan 270/mt at Yuan
5,850/mt ex-works, reflecting tradable discussions heard at Yuan
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Source : Platts