24 September 2013 11:30 [Source: ICIS news]
SINGAPORE (ICIS)--Spot prices of China’s recycled polyethylene terephthalate (R-PET) for clear/white hot-washed flakes fell for the first time in four weeks on Tuesday amid lower offers from producers, according to market players.
R-PET prices in China fell by $20-30/tonne (€15-22/tonne) to $820-900/tonne CFR China on 24 September from $850-920/tonne a week earlier, according to ICIS data.
However, the decrease in prices is expected to be short-lived as prices are expected to remain largely stable in the near-term, according to buyers.
Domestic prices of R-PET have been stable for the previous four weeks amid stable market fundamentals, ICIS data showed.
Market sentiment has been bearish because of the global economic slowdown which has in turn hampered demand, despite the traditional peak season in the late August to early September period, according to market participants.
Meanwhile, the import permit which was enforced since July has capped imported cargoes entering China due to restrictions on the quantities and qualities of the cargoes purchased, they said.
Low capital availability in the downstream market have also hampered buying appetite in the market, market players said.
Southeast Asian countries have been snapping up cargoes at competitive prices as China’s labour and production costs had surpassed that seen in the region, they added.
($1 = €0.74)
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