Local PET trades above €1000/ton threshold in Europe
In Italy, a buyer reported receiving initial offers up €60-70/ton from different European suppliers and added, “Prices are increasing rapidly as we were not able to find prices below €1060/ton in the local market. The import market is slow as prices are not offering a competitive edge. We do not expect a reversal in trend for the near term.”
A distributor reported to have concluded some deals on the high end of the range, achieving €70-80/ton increases from January. According to the seller, PET producers have been complaining about margin losses last year and they are now trying not to lose any margins. “Still, we were not expecting such large hikes for February,” added the seller.
Nevertheless, some buyers are cautious for now and they prefer to stay in a wait and see position.
A distributor from Switzerland offering West European material with €50/ton hikes commented, “Demand is not that brilliant due to the strong increases on PET prices. In our opinion, PET prices will increase further by around €40/ton in March.”
A converter in Belgium who settled February net contract prices with €60-70/ton hikes reported, “We are monitoring the market in order to decide whether to purchase some spot material or not in February as the outlook seems to be firm for March. On the other hand, it is hard to reflect higher costs on our end products.”
Last week’s low ends below €1000/ton disappeared from the market as an Italian converter confirmed this by saying, “We purchased some volumes last week below €1000/ton from a South European source, but we are not able to find these levels this week. Our stocks are running low and we will need to restock as we did some pre-buying from the import market in November. We will make more inquiries before making any purchases.”
Regarding the removal of anti-dumping duty on Chinese PET, many players concur that there won’t be any sudden effect on the European PET market while some believe that it might contribute to a more balanced market.
In Italy, the local PET range stands at €1030-1100/ton while PET prices are reported within the range of €1020-1080/ton in Northwest Europe. The current ranges in the spot market indicate the highest levels seen since July 2015, according to ChemOrbis Price Index.
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