PET bottle hits 9-month high after Jan hikes in Europe

European PET markets started the year on a firm footing, supported by higher costs and lower availability due to a lack of imports from Asia. Initial January offers emerged with increases of €50-60/ton, which pushed prices above the €800/ton level in most cases.

The PET markets reached their highest levels not seen since late March 2020, according to ChemOrbis Price Index.

Disruptions in the supply chain led to a fall in overall supply levels. Import prices lost competitiveness due to the surging freight rates and long-lead times amid a lack of vessel availability. Thereby, regional converters continued to meet their urgent needs from the local market.

Some suppliers even reported to have sold out their monthly quotas as buyers favored local market over imports and secured some material in advance.

Meanwhile, sellers find further room for hikes likely once more players are back to the market following holidays. Supply woes as well as higher costs may prompt converters to build some stocks, players said.

Rising feedstock prices also support the current uptrend. MEG contracts are expected to settle with visible gains, considering rapid hikes in the spot market. PX contracts are also awaited slightly higher.