27 May 2005 15:01 [Source: ICIS news]
LONDON (CNI)--Asian polyethylene terephthalate (PET) spot material is again attractive to European buyers, with prices now equivalent to Euro1,000/tonne free delivered (FD) for June/July arrival, CNI learned on Friday.
European spot prices for bottle grade chips are higher, at Euro1,040-1,050/tonne FD prompt, according to sources among major European buyers, producers and traders.
So, after months showing no interest in Asian material, European buyers said they are considering the latest competitive offers from Asia.
The majority of Asian producers of bottle grade chip PET have been deterred from exporting to the European Union (EU) for most of the first half of this year due to high raw material prices and anti-dumping charges. The last time Europe experienced large volumes of imports from Asia was in January, when the weak dollar attracted much buying interest.
At today’s low prices, however, anti-dumping duties no longer deter most Asian producers desperate to sell due to very weak local demand and huge over-supply.
The precise volume of Asian PET headed to Europe over the next six to eight weeks and the potential damage to the European market are unquantifiable at this stage. However, European contract prices already look set for a further fall in June.
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