Bullish factors support Europe’s PET market after summer holidays
Strong upstream costs have helped sellers sustain their stable to firm stance on their PET offers for the second half of August. As for the near term, several players commented that the European market might be able to preserve its current trend on the back of still-rising import prices and firm feedstock costs.
A West European PET producer, who had announced an increase of €20/ton at the beginning of the month, noted, “We were able to obtain our initial hike requests thanks to the support from stronger PX costs and firmer import prices. Plus, demand has been healthy in the recent weeks due to hot weather conditions.”
Initial August PX contracts settled with an increase of around €60/ton from July in Europe.
A distributor in Switzerland said, “We sold local materials with rollovers this month while supply is still lower than demand. Plus, import prices continue to follow an upward trend week over week as feedstock costs in Asia are strong and PET prices are firmer both in Southeast Asia and China.”
A regional converter also commented, “Considering the recent uptrend in the import market and expectations of higher costs for September, we think that the awaited softening in PET prices may be postponed to October, when buyers start to run down their stocks.”
Europe’s PET supplies are yet to be fully recovered while most sellers expect demand to remain vivid in the first half of September thanks to good weather conditions in the region.
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