News Code : 45536

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  

further. 

“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  

showed. 

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  

Yuan 5,515/mt. 

China prompt domestic DTY150D was assessed down Yuan 17/mt at  

Yuan 7,000/mt ex-works, reflecting tradable discussions heard at Yuan  

7,000/mt. 

China prompt domestic FDY150D/96F was assessed Yuan 35/mt higher  

at Yuan 5,725/mt ex-works, reflecting tradable discussions heard at  

Yuan 5,725/mt. 

China prompt domestic PSF was assessed down Yuan 270/mt at Yuan  

5,850/mt ex-works, reflecting tradable discussions heard at Yuan  

5,850/mt.

Follow us on twitter @petrotahlil 

Source : Platts

END 

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