PET prices in Southeast Asia likely to decline further

BEIJING (Scrap Monster): The weakness in demand owing to upcoming Chinese New Year holiday has resulted in a cool-off in PET prices in South East Asian markets.

Asian spot prices lost US$20/ton for MEG, US$40/ton for PTA and US$90/ton for PX when compared with the levels at the end of December. The import PET prices declined by US$20-30/ton on CIF Southeast Asia during the past week alone. According to Chinese market participants, demand has not picked up after the Christmas and New Year holidays. With Chinese New Year around the corner, buyers are seen waiting for the prices to slide down further.

The PET import prices in Indonesia too edged lower during the past week. In addition to the lower PET prices, the market participants also fear that the Indonesian government may impose anti-dumping duties on PET imports from China, Taiwan, South Korea and Singapore. If the government goes ahead with imposition of duty, then importers may be forced to shift their purchases to non-dutiable South East Asian countries. According to sources, Indonesian government may impose duties only after the holidays.

The Vietnamese imports from the regular suppliers from Thailand and South Korea have almost remained steady during the past week. However, Vietnamese PET bottle manufacturers are confident that they may receive US$10-20/ton discount on shipments, mainly on the back of the weaker demand. Moreover, Chinese cargoes are available for cheaper prices.