Will European PET respond to softer China and feeds?
A buyer from Germany confirmed that the sentiment has changed in the last few days due to softening feedstock costs.
Players are now observing how European PET markets will respond to lower feedstock costs and the recent downturn in Asian markets in the midst of the approaching high season and limited supplies. Some PET producers in Asia have pioneered price falls this week after around five months of firming given the plunge in spot MEG prices during March.
Expectations to see a seasonal pick-up in demand prevail among European players. The cold spell that has been in place for a while in Europe delayed the start of the high season. If demand improves in line with the expectations, this might mitigate the impact of the cost pressure in conjunction with reduced output, many players argue.
A Northwest European distributor opined, “We think that some shutdowns in the region will continue to support the PET market. Plus, demand may improve before the Easter holidays, the first important date of the high season.”
However, some players noted that buyers were able to secure their needs without any major problems despite limited availability in Europe. They also drew attention to the fact that supplies should improve in April, which may lead to some softening in price levels as was the case in the same period of last year. Players concur that demand will set the tone of the market trend if feedstock costs continue to move south.
“We are limiting our purchases as we have sufficient stocks for now. We may consider making fresh purchases if attractive import offers emerge from Asia in the coming days.” opined a buyer from Belgium.
Meanwhile, weekly average prices on ChemOrbis Price Index suggest that Northwest Europe’s local PET market has been hovering around a more than three-year high for the past seven weeks.
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- June expectations surface in Mid-Eastern, African polyolefin markets
- China’s local PVC market retreats from 8-month high
- Initial June PE offers to SEA signal firming despite buyers’ resistance
- Firming in ethylene lags behind propylene in Europe
- PET rally stalls in China after prices hit four-and-half-year high
- Asian PS retains firming path on supportive upstream
- June PE outlook under discussion in Europe
- Taiwanese major lowers June PVC offers to Asia despite firm China
- Local PP markets cautiously firmer in Vietnam, Indonesia
- Global ethylene prices continue to defy energy rally