In the case of higher upstream costs, the Asian PET prices have risen compared to last week. Upstream costs not only increased compared with last week but also more strong compared with the end of October. In addition the price is rising compared to last week.
PTA supply in Asia and the MEG supply concerns led to higher upstream costs. According to local market sources, a global manufacturer, has appointed its December MEG contract price increase in November, based on $60/ton. Meanwhile, PX PTA future prices also allegedly due to the rise in prices will be higher.
China PET compared to the previous week rise by $10/ton in quotation of the foreign markets. South Korea last week is almost the same as the previous week in PET quotation of foreign markets. A Chinese manufacturer of low-end offer is the same as before because the offer is already high. Some of the local producers are given a discount price, but the overall market FOB prices remain. Moreover, PET demand is still weak, which is one of the reason of the lower prices.
Local prices rose slightly, but they are still waiting to see, because they want ti see action before they find a clear market trend rally will not last very long. They will procure in December and they are still closely watching the market dynamics. Other global and regional markets also witnessed the Asian PET is higher in imported materials.
Many market participants are questioning the sustainability of PET prices rose overwhelmed. Some buyer pointed out that there had been PET prices due to higher costs and short rise, and then began to decline, they do not believe the market has bottomed out. At the same time, many people emphasize the problem of weak crude oil prices. Even OPEC decided to cut production in the November 27 meeting, this situation may be changed, besides, most market participants believe that the global PET demand situation is not very conducive to the price trend.