This week the prices for PET in Asia fell to USD1,100 -1,130/tonne FOB China, down USD80-90/tonne lower from the previous week. Export prices were decreased by Korean and Chinese producers. Such sharp drop in prices was a surprise for the Asian market. Many sellers expected for stabilisation of prices and more active buying activity after the Chinese holidays.

 

Trader of Hanwha Corporation Dilshod Gulamov said: "We expected that the fall in prices will stop within USD1,180-1,190/tonne FOB China, since it was the minimum in the current year. Traders also expected growth in demand in October after the Chinese holidays. But PET prices on the contrary collapsed on Monday. Demand fell substantially, buyers were interested in prices, but did not purchased. If oil continues to decline, the price of paraxylene will also continue to decrease, resulting in PET price cuts. "

 

The largest importers of PET and converters in the CIS countries also were in no hurry to buy feedstock. Despite the sharp decline in PET chips prices, converters have taken a wait. There are reasons for the sluggish demand, said the biggest buyer of PET in the CIS countries. The first reason is expectations for further price declines. Oil prices are expected to fall further, resulting in a further PET price cuts. The second reason - the significant carryovers of finished products and PET chips in the domestic market of the CIS.

 

Warehouses of  traders, producers PET and converters can meet the needs of the market for the month ahead, so there is no sence in the procurement now.