MOSCOW (MRC) - Importers of polyethylene terephthalate (PET) in the CIS countries reported a price drop for Chinese bottle grade PET.
This week the price for PET chips fell below psychological level of USD1,000/tonne FOB China, according to ICIS-MRC Price Report.
On Tuesday, 16, December export quotations for Asian PET were heard in the range of USD980-1,010/tonne FOB China, excluding VAT.
Buying activity remains weak on a bearish market. Prices for PET have been falling in line with decline in the feedstock prices.
Producers of terephthalic acid (PTA) in China have reduced capacity utilisation in an attempt to keep prices from further decline. At the same time, falling prices of paraxylene will force producers of PTA to make concessions to buyers (PET producers).
Paraxylene prices have dropped below USD900/tonne CFR China last week. However, though margins in the production of paraxylene narrowed, but remains high. The difference between the prices of paraxylene and naphtha in Asia last week reached USD350/tonne.
Producers of paraxylene will go on further price cuts amid falling oil quotations, which affects PET prices. According to MRC Price Forecast report, PET prices in roubles in the Russian market will continue upward trend in December 2014 and January 2015.
Importers have received cheapening PET in dollar terms (coming to the market with a delay of 45-50 days). However, the rate of national currency are falling, ahead of price reductions for PET chips in Asia, leading to an increase in the cost of procurement.
Russian PET prices are far from the parity to Asian prices (considerably lower). Local plants will continues to raise prices in 2015.