China's PET producers at odds on export offers

According to market players in China, several domestic PET producers began the week by adjusting their export offers downward by around $20-30/ton due to persistently lackluster sales performance as well softening PTA and MEG feedstock costs, bringing their new offers to around $1100/ton FOB China. These producers commented that they are not feeling optimistic about their future prospects as it is the traditional low season for downstream products, adding that some beverage manufacturers in the country have already slashed their operating rates. 

In the meantime, some producers elected to maintain their export offers at around $1120-1130/ton FOB China this week based on a lack of inventory pressure. These producers stated that they are close to having negative margins at their current offer levels and that they do not expect PTA feedstock costs to register major declines over the short term so long as crude oil prices remain at relatively high levels.