Pre-buying for PET starts in Europe, Italian buyers yet to follow
A buyer in Italy said, “We are keeping our stocks low due to the uncertainties over tax on plastic packaging. Trading activities are quiet calm as buyers try to avoid risks until the tax is fully approved.”
Several PET sellers affirmed that demand has been slightly better in the north compared to the south. Demand is weaker in Italy compared to Northwest Europe as buyers are sidelined to see developments regarding the tax issue, a buyer said.
Some European producers reduced production rates to re-balance the supply-demand dynamics. However, a rebound is not expected in the short term despite slightly lower PET availability from last month.
On a side note, import origins were not preferable as they trade at par with the local prices. A reseller commented that import suppliers diverted their cargos to other outlets, where they can obtain better netbacks.
Asian PET offers were reported at €830-850/ton on DDP, 60 days basis both in Italy and Northwest Europe.
Spot PET offers were last reported at €840-930/ton FD NWE, 60 days and at €850-940/ton FD Italy, 60 days.
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