27 July 2010 10:36 [Source: ICIS news]
DUBAI (ICIS news)--Major producer Saudi Basic Industries Corp (SABIC) has lowered its domestic offers for August polyethylene terephthalate (PET) cargoes by $10/tonne (€7.70/tonne) due to weakness in Middle East spot market values, regional players said on Tuesday.
The company’s offers were pegged at around $1,282-$1,297/tonne DEL (delivered), said the sources.
“The latest offer is less attractive, compared to the current spot market prices on a landed basis,” said a converter.
PET spot prices in Asia were significantly lower at $1,100-1,120/tonne FOB (free on board) China on 23 July, according to ICIS data .
Buyers in the Gulf Cooperation Council (GCC) region were more interested in prompt cargoes, said market players.
This was especially so when the market was in a downtrend, said the converter, who added that Chinese shipments would typically take six to seven weeks, and sometimes up to eight weeks, to arrive.
Converters may opt to purchase minimal quantities from a supplier and shop in the spot market – if they required additional volumes, said market observers.
PET resins are used in making bottles for softdrinks and mineral water.
($1 = €0.77)
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