European PET cracks €900 FD threshold for 1st time since 2021

European PET markets have come under renewed pressure in early September as deals started to emerge below the critical €900/ton FD threshold. Weak consumption, combined with comfortable availability, has tipped the balance further in buyers’ favor, reinforcing expectations for a steady-to-softer outlook. This is the first time prices dipped below €900/ton FD level since January 2021.

First confirmed drops below €900 in Belgium   

A buyer reported concluding some of her September deals in West Europe with reductions from August, confirming prices slightly below the €900/ton FD threshold. She noted, “Our end-demand has softened slightly compared to last month amid lower overall consumption. We are not excluding further small drops, given the state of demand.”

Imports widely below €900, local prices tiered by volumes
   
A distributor confirmed that import PET below €900/ton DDP is now widely available for large customers, with Asian origins standing at €870-880/ton DDP, 60 days. As for European-origin material, slightly sub-€900/ton prices are also achievable, but only for large-volume purchases. Otherwise, most offers remain above this threshold, even hovering at or above €950/ton for smaller parcels.

A distributor remarked, “The market is weak, but suppliers can’t apply large drops as they have no margins, also considering raw material costs see almost no changes. Hence, they can’t sell below costs. The situation is not easy. Suppliers warn of potential closures as weak demand and low margins persist.”

Italian market still carries a slight premium over NWE   

Some players maintained that Italy is still trading slightly above Northwest Europe, where more competitive deals have already been observed. A distributor commented, “I am not sure the Italian market has dipped fully below €900/ton yet, but the gap with NWE is narrowing fast.”

Another buyer in Italy said he paid around €940/ton for local PET, which along with purchases of some near-to-prime material brought his average price slightly above €900/ton FD. He believes that regional producers may continue to trim prices, but stressed that they have little room for sizeable drops as margins are already razor-thin. He suggested prices could edge toward €850/ton later this year if demand remains underwhelming.

Weak demand outweighs cost stability   

Although raw material markets did not see major swings and MEG settled only €10/ton higher in September, downstream weakness continues to dominate sentiment. Beverage consumption remained muted through the summer and shows little sign of recovery with the end of the high season. Buyers remain cautious, securing volumes strictly for immediate needs while sitting on adequate stocks.

Producers resist deeper cuts, but pressure mounts

Regional producers are reluctant to concede to steep reductions due to squeezed margins. Yet, sources acknowledged that maintaining price stability has become increasingly difficult in the face of lackluster demand and reports of late-arriving imports. Even if imports are not aggressively priced, their presence adds to already comfortable supply.

Outlook: Prices may drift toward €850   

The consensus among players is for a largely steady-to-softer trend in September, with additional small corrections likely as the month wears on. While producers are expected to avoid drastic cuts, the possibility of PET prices inching closer to €850/ton by year-end cannot be ruled out. As one buyer put it, “The market has already broken the psychological €900/ton barrier. Unless demand improves, the pressure will remain on the downside.”