June PET deals closed significantly lower in Europe
European PET hits 2-year low
According to the weekly average data on ChemOrbis Price Index, PET prices have recently hit their lowest levels in two years.
Meanwhile, June PX contracts were initially agreed with decreases from May. Earlier in the month, June MEG contracts also settled with €60/ton decreases.
European PET makers reduce rates on weak demand
Rumor has it that regional PET producers trimmed operating rates at their plants due to more than comfortable supply and subdued demand.
“Buyers are mostly covered and we have lowered our production rates recently to avoid excessive supplies,” a source from a producer affirmed.
Divergent opinions upon the future PET trend
If sustained, the rebounding PET prices in China may help European PET prices to stabilize at their current levels or even witness a rebound, some players argued. The lower operation rates at PET plants may also serve to fix supply-demand imbalance in the market.
However, buyers think that a reversal of the PET trend is less likely while further decreases are not off the table. They attribute their view to the high stock levels on the buyers’ side and poor end demand especially from the beverage sector.
A bottle maker in Germany said, “PET consumption is considerably lower from the same period of 2018. Prices may witness further drops in July if demand does not improve.”
The majority of players concur that demand, which atypically defies seasonal patterns, will be determining if a rebound will be possible or not in the days to come.
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