The FOB Northeast Asia bottle-grade polyethylene terephthalate (PET) price rose $13 week on week to be assessed at $990/mt Wednesday, its highest since July 22, 2015, when the price was assessed at $1,010/mt, S&P Global Platts data showed.
Spot demand for PET cargoes was strong, with buyers actively seeking cargoes on expectations of a further price increase in the near term due to bullish feedstocks purified terephthalic acid and monoethylene glycol.
On Wednesday, the CFR China PTA price jumped $20 week on week to be assessed at $665/mt, its highest since July 7, 2015, when the price was assessed at $680/mt. The CFR China MEG price rose $40 week on week to $955/mt Wednesday, its highest since June 24, 2015, when the price was assessed at $956/mt.
This week in the Asian PET market, some transactions were heard at $990/mt FOB NEA. Last week, an offer level for a spot PET cargo was heard at $980/mt FOB NEA.
Despite the big increase in Asian PET prices, the PET margin in Asia remained negative. On Wednesday, the Asian PET margin was calculated at minus $56.60/mt, compared with minus $38.80/mt a week earlier. Market sources said spot PET offers would likely remain high for the time being on high feedstock costs.
PET supplies in the region are seen to be healthy, with high PET plant operating rates. According to the latest data from South Korean Customs, South Korea's PET exports in December were 79,036 mt, up 3.4% on the month and 7% on the year.
