Europe’s PET players discuss feasibility of March hikes

In Europe, PET suppliers have approached the market with renewed hikes of up to €30/ton for March. The firmer trend that started in February has remained in place amid regional producers’ need to improve their profitability. However, players have started to discuss the possibility that this momentum may lose steam this month.

Costs see marginal hikes

PET prices rebounded in February, after several months of stable to softer trends, supported by rising upstream markets and monomer costs, as well as a weak euro/dollar parity, which caused the import market to lose its competitiveness.

However, the latest monomer settlements saw only marginal increases, with the awaited February PX contract being agreed with €5/ton hikes and the March MEG contract settled with a gain of €15/ton.

Hence, sellers are likely to find less support from the cost side in March compared to the previous month, while some of them have already reported resistance from buyers.

Imports may regain competitiveness

On top of this, the euro/dollar parity has recently become more favorable, with the euro gaining some ground over the US dollar after several months of weakness. This had kept buyers away from the import market, while sellers also struggled to provide quotations, as offers were mainly in line with local resin prices, not to mention prolonged lead times.

A source from a West European producer commented, “We will try to improve our margins in March but it may be difficult. The current state of energy markets may put a cap on cost increases, while the import market may become attractive again amid rising euro/dollar parity. We have already seen a stabilization in the latest import offers from Asia.”

Buyers in a wait and see mood

Whilst some buyers have already started to conclude their monthly deals with increases, others preferred to wait and search the market further as they were not in a hurry to purchase. Despite the absence of import availability and a few production issues, overall supply has been rather comfortable across the bloc.

A converter based in Belgium plans to secure some volumes during the month but aims to negotiate possible hike requests from his regular suppliers. Another converter in the preform sector claimed to have high stocks, adding that producers are not in a position to seek further hikes in March, as gas and electricity costs have declined, while monomer prices have posted only marginal variations. Moreover, the buyer also commented that end-product demand is struggling to rise.

Demand has yet to see an uptick

Indeed, preparations for the high season are expected to start soon, while an improvement in demand has not been seen so far. According to players, 2025 consumption is expected to be similar to last year’s.