PET increases pass on July deals despite lower feeds in Europe
MEG contracts were settled with €6/ton decreases from June at €853/ton FD NWE while PX contracts were agreed at a single level of €715/ton with the same terms, down €40-50/ton from June split settlements.
Increases of €10-20/ton are reflected on deals while some producers were already sold out for their July allocations given good demand and limited supplies. A source from a West European supplier commented, “We have started to give quotations for August with further increases of €20/ton.”
On the buyers’ side, there are some converters who are not willing to pay increases amid lower feedstock costs and they are trying to push for rollovers.
A buyer, who received July offers with €25/ton increases, was surprised about the amount of these increases. He said, “The producer’s decision stems from limited supply and higher demand. We plan to wait to have a clearer idea of the market before purchasing.”
A preform producer in Belgium said, “We have received a few offers from the local market indicating €10-20/ton hikes; however, we preferred to source from the import market as prices are more comparative. We do not think that sellers’ firm stance can be sustained as current increases are not supported by the upstream markets. We are not positive about the August outlook as well since buyers will lower their stocks ahead of holidays.”
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