Prices for PET in Asia have been falling almost all the third quarter. Prices for PET in Asian have decreased from USD1,360/tonne FOB  to USD1,200/tonne FOB over the period from 1,July to mid September. Export prices for Asian PET in Q3 have decreased by 11.8%. 

 

At the same time exchange rate of the Russian rouble compared with the dollar dropped by 17.6% - from 34Rb=1USD to 40Rb=1USD. 

 

Spot prices for Russian PET are heard now in the range of Rb60,500-63,000/tonne FCA, including VAT.

 

Prices for Asian PET, which arrived in the market in the late September, were at Rb67,000-69,000/tonne CPT Moscow, including VAT.

Given the current rate of 1USD=40Rb, prices for Chinese bottle grade PET, which arrives in the late November, will be in the range of Rb64,500-68,500/tonne CPT Moscow, including VAT. 

 

Seasonal factor also contributes to the switching to Russian PET. However, despite the attractive prices, converters do not need the additional inventories. According to MRC analyst Igor Grishchenko, Russian PET producers, who  use imported feedstock (PTA and MEG), are working with a negative margins now. Prices for feedstock in foreign markets are in dollars and euros. Rouble devaluation has increased in the third quarter, resulting in a bigger costs for PET production. At the same time prices for Russian PET practically remained steady, some companies even reduced PET chips prices.