MOSCOW (MRC) - Falling prices of feedstock (terephthalic acid, monoethylene glycol and paraxylene) last week led to a decline in bottle grade PET prices in China and South Korea, according to ICIS-MRC Price Report.
Spot prices of paraxylene in Asia fell to USD66/tonne in the end of last week. Price quotation of PTA was cut by USD25/tonne, which also resulted in a price decline of PET.
Major importers of PET chips reported the decline in the prices for CIS countries. Russian converters said PET prices fell an average by USD10/tonne in China and USD10/tonne in Korea.
The most attractive export prices in China were heard around USD1,340/tonne FOB China. The lower end of Korean PET prices was at USD1,370/tonne FOB. Falling import quotations put pressure on the price of Russian PET.
Russian PET producers voiced spot prices at Rb64,000-66,000/tonne FCA, including VAT and are in no hurry to cut quotations. At the same time, converters expect contract prices to fall in November and practically have not purchased in the spot market in October.
Price offer from Chinese suppliers for Ukrainian converters with the freight was heard at USD1,410-1,440/tonne CIF Odessa, excluding VAT. PET prices from African and Middle Eastern producers for Ukraine were at USD1,460-1,480/tonne CIF Odessa, excluding VAT.
At the same time, suppliers of PET chips were ready to make concessions to customers to support the demand. Converters also said that they will consider these offers in the case of price reductions.