Further PET price hikes on horizon in Europe

PET prices are tracking an upward momentum in Europe in line with the higher feedstock settlements. January PX contracts were fully settled with an increase of €60/ton at €820/ton while MEG contracts were settled €150/ton higher at €915/ton, causing a remarkable increase in PET production costs. Some market participants expect that the firming trend in feedstock costs is likely to persist in February, which is adding to the bullish expectations.

A distributor in Switzerland reported concluding some deals for European PET material with €40/ton increases at €980/ton FD Germany, 60 days while also noting that he is offering with larger hikes for a different West European origin. The seller added, “Although buyers did some pre-buying in December, they will need to return to the market to replenish soon due to the firmer expectations for next month. We expect PET prices to increase by around €50/ton in February. We have also sold some import material for Korean and Southeast Asian origins with February delivery at €990-1000/ton DDP Italy, 60 days.”

A converter in Italy reported that they did not purchase this month as they have comfortable stocks, commenting, “Our suppliers expect PET prices to continue increasing between February and March.” The buyer added that reduced import volumes into Europe also paved the way for higher prices in the PET market. Besides, import offers are not offering a competitive edge for European buyers on the strengthening US dollar.

Local PET prices are currently reported at €980-1020/ton both in Italy and Northwest Europe on local terms.