Sub-€1250/ton PET offers fade after three-month slide in Europe

Europe’s PET bottle market entered August on a firmer footing, with suppliers testing limited price increases after July’s steep corrections. While buyers remain cautious and continue to await monthly MEG and PX settlements, market participants increasingly note that spot levels below €1250/ton FD are disappearing from the low end of the market, particularly in Italy.

Limited hikes emerge as market seeks a floor

Fresh August offers across Italy and Northwest Europe surfaced with increases of around €20-50/ton, supported by firmer upstream costs following crude oil volatility. However, producers admitted that selling above €1300/ton FD remains difficult as buyers are not rushing to replenish stocks and supply remains generally healthy.

A South European distributor said he managed to conclude early August sales with €20/ton increases before many customers shut down for the summer holidays. Another distributor believes the market has reached its floor, expecting mainly rollovers to small increases despite balanced supply conditions.

Sub-€1250/ton offers become scarce

Buyers reported that prices below €1250/ton FD, which were achievable in July, have largely disappeared from the market. Although most expect suppliers to seek higher prices, they remain skeptical that significant increases will stick, citing comfortable inventories and sufficient availability.

Several converters opted to postpone purchases as they wait for greater clarity on feedstock settlements. End-demand from the beverage and mineral water sectors remains satisfactory but continues to trail the stronger consumption levels recorded a few years ago due to changing consumer behavior.

Import pressure limited for now

Import offers remain scarce and generally uncompetitive, encouraging buyers with prompt needs to source locally. However, some converters expect overseas cargoes arriving later in the quarter to increase competition if market conditions remain volatile.

Outlook: Stability favored after holidays

Trading activity is expected to slow sharply as the summer holiday season peaks across Europe. Most market participants anticipate stable prices to modest increases through the remainder of August, while September’s direction will hinge on feedstock costs, crude oil movements, and post-holiday demand.