25 June 2008 17:09 [Source: ICIS news]
LONDON (ICIS news)--European polyethylene terephthalate (PET) sellers are talking up July prices and mulling rises of at least €100/tonne ($156/tonne), anticipating hefty raw material increases and hoping for a shift up in demand, they said on Wednesday.
“We will be very solid on our price increases of €100/tonne and we might have to miss some orders as a result,” said one large producer.
“Yes demand was not great in June but July looks better. We can foresee immediate raw material cost increases of around €70/tonne and are considering announcing a €120/tonne PET target increase,” said another.
Buyers have so far been cautious on July pricing.
PET sellers announced hikes of around €100/tonne for June and ended up getting plus €50/tonne as an average increase.
Consumers accepted raw material purified terephthalic acid (PTA) and monoethylene glycol (MEG) pricing sounded firmer for July, based on higher Asian contract nominations but were doubtful that PET supply/demand factors would allow increases close to target levels.
The summer months should be the peak period of demand into the derivative bottle beverage market,but poor weather, ongoing transport strikes and disappointing economic performance had hampered demand, especially in ?xml:namespace>
Sellers were hopeful that PET could follow the trend of other polymers such as polyethylene and polypropylene where producers were priming the market for increases, pending likely ethylene and propylene third-quarter contract increases.
In related news, Indorama’s PET and PTA units in
Pre-discounted June bottle grade PET prices were pegged between €1,505-1,610/tonne FD (free delivered) W Europe (west Europe).
($1 = €0.64)
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