Asian PET: Yarn and fiber grades down by Yuan 295- 448/mt tracking crude.

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⚫Yarn and fiber demand remained sluggish.

⚫PE and PP users are switching to PET.

The yarn and fiber grades prices trended down by Yuan 295-448/mt, the buyers are cautiously making procurement decisions amid fears that crude oil prices may drop further.

The operation rate in the downstream texture sector lowered to around 50%, while the export volume vanished due to coronavirus pandemic.

Buyers are building up inventory and are expected to pressure the operation rate further.

In addition, the upcoming seven days national holiday for Labor day in China was expected to be extended by downstream plants to two weeks, due to sluggish demand from overseas.

On the other hand, a producer said the margin for yarn grades are stepping into breakeven, and if the situation continues, some producers may consider lowering operation rate.

On bottle grade, the China export volume was seen lowered due to some logistic constraints at the port side, and weaker demand from overseas.

“Our normal export volume is about 30% of our total capacity, however, it lowered to 20% due to weak overseas demand and FOB China price,” a China-based producer said.

Due to higher polypropylene and polyethylene prices, some non-facemask polyester producers are switching to PET, adding more demand for bottle grade PET.

HDPE film CFR Far East Asia price was assessed lower by $20/mt week on week at $700/mt, PP Injection CFR Far East Asia price was assessed down by $55/mt for the same period at $760/mt.

The bottle grade margin was seen better compared to yarn and fiber grades, while the China domestic margin was seen at Yuan 800/mt or $112/mt and the export margin was calculated at $62.62/mt, which makes the producers prefer selling it in the domestic market.

Upstream, PTA CFR China price was assessed lower by $25/mt week on week at $395/mt, MEG CFR China price was assessed down by $28/mt for the same period at $367/mt.

Asian PET Weekly Rationale FOB Northeast Asia polyethylene terephthalate was assessed down by $20/mt week on week at $660/mt Wednesday, below tradable values heard from producers at $730-$750/mt FOB Taiwan, $680-$700/mt FOB China and tradable levels heard from traders at $680-$690/mt FOB Korea.

FOB Southeast Asia PET was assessed lower by $20/mt at $650/mt over the same period, in line with the trend in the CFR Northeast Asia market, amid limited discussions.

The prompt domestic China POY150D 48F was assessed Yuan 295/mt, down Yuan 4,825/mt ex-works, reflecting tradable discussions heard at Yuan 4,825/mt.

Prompt domestic China DTY150D was assessed down Yuan 448/mt at Yuan 6,395/mt ex-works, reflecting tradable discussions heard at Yuan 6,395/mt.

Prompt domestic China FDY150D/96F was assessed Yuan 333/mt lower at Yuan 5,235/mt ex-works, reflecting tradable discussions heard at Yuan 5,235/mt.

Prompt domestic China PSF was assessed Yuan 304/mt lower at Yuan 5,970/mt ex-works, reflecting tradable discussions heard at Yuan 5,970/mt.

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