European PET markets meet summer holidays at a five month low
Players are expected to be away from the market until the end of August while many had already left their desks in the past days. According to data from ChemOrbis Price Index, local PET prices on both FD Italy and FD Northwest Europe basis hit a five month low just before the summer holidays.
In Italy, a distributor sold South European PET with rollovers from July, stating, “We couldn’t achieve increases on August deals given slow demand. Many companies in the packaging sector are already closed for the holidays.” A second distributor reported that they conceded to giving €10-20/ton discounts on their August deals for various European origins, adding, “Demand is relatively better in Italy when compared to West European countries. However, it is still frail and we needed to accept lower bids in order to wrap up our August business.”
A converter operating in Italy’s packaging sector stated, “We purchased small volumes of PET from our South European supplier with decreases of €20-30/ton for August. We have already suspended our production for the summer holidays. Demand is weak so we decided to extend our shutdown for one more week.”
In Northwest Europe, a distributor reported concluding August PET deals with decreases of up to €20/ton from July. “Demand is sluggish amidst comfortable supplies. It is too soon to make predictions for September at the present time, but we feel that additional decreases might be possible in the regions’ PET markets in the midst of the summer lull,” he opined.
A packaging converter in Germany stated that he purchased Northwest European PET for August with reductions of up to €30/ton when compared to July. He noted, “Sellers are open to negotiations as they are struggling to conclude deals owing to the fact that many buyers have already left their desks for holidays while others are sidelined in anticipation of seeing further discounts. However, some buyers are concerned about an upturn in September due to the possibility of a demand improvement following the holiday.”
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