14 November 2007 15:55 [Source: ICIS news]
LONDON (ICIS news)--November contract negotiations for European polyethylene terephthalate (PET) have been disappointing for sellers trying to secure price increases of plus €30/tonne ($44/tonne), they said on Wednesday.
“I thought we could at least get plus €30/tonne, but in reality the average increase is no higher than €15/tonne due to the low demand,” said one producer.
“Recently though, customers have been asking for additional quantities in November, pre-buying December volumes as it looks like prices will rise in December or January as a result of raw materials,” he added.
Many contracts were yet to be finalised, however, and buyers were reluctant to accept any increases.
Producers had initially targeted increases of around €50/tonne on November contracts citing a need to recover margins, but were stymied when demand remained low and raw material prices failed to yield expected increases.
“They are in a difficult position these guys, but they will have to wait until demand improves before they will be successful in recovering their margins,” one buyer said of producers.
Gross prices for October bottle grade material were assessed at €1,410-1,500/tonne FD (free delivered) west ?xml:namespace>
PET is a thermoplastic polymer resin of the polyester group and is used in the production of food and liquid containers.
($1 = €0.68)
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