European PET market up, shrugging off lower feedstocks
The July PX contracts were settled down by €40-50/ton ($46-57/ton) from the split settlement of June while July MEG contracts were agreed €6/ton lower from the previous month’s settlement level.
A producer in Italy said that they sold out their July allocations with hikes of €10-20/ton from June. “We are giving offers for our August quota with further increases of €20/ton as demand is supporting due to the season and the current levels in import market are not competitive,” added a producer source.
Some PET bottle producers also confirmed accepting increases of €10-20/ton from June, citing limited supplies and healthy seasonal demand as the main reason behind price hikes.
However, there are also some players approaching sellers’ hike attempts with skepticism, pointing to weak feedstock markets as well as an expected slowdown in buying activities ahead of summer holidays. According to these players, an increased number of import offers may also push sellers to tone their prices down towards to the end of the month.
A PET bottle manufacturer in Belgium said that they received July offers with increases of €10-20/ton from June; however they preferred to secure some materials from the import market as they found import offers more competitive. A manufacturer in Italy also said, ”Demand is good thanks to good weather while supply is balanced with buying activities due to import cargoes. We think that sellers may not be able to achieve their increase targets through the end of the month as crude oil, PX and MEG prices are decreasing. The outlook will remain weak also for August, when buyers will lower their stock ahead of summer.”
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