14 November 2008 23:59 [Source: ICIS news]
LONDON (ICIS news)--European polyethylene terephthalate (PET) prices fell €100/tonne ($127/tonne) in November because of low demand, falling raw material costs and pressure from imports, sources said on Friday.
"Imports from Asia and the Middle East put pressure on the market,” one customer said.
Contracted European material settled anywhere between €940-1,050/tonne FD (free delivered) Europe, depending on customer size, buyers and sellers said. The higher values which emerged were attributed to longer-term speciality accounts.
So far, the majority of players saw values slip by €100/tonne in November compared with October. This followed a drop totalling €160/tonne in September and October, according to global chemical market intelligence service ICIS pricing.
Most buyers and sellers said that, in this falling market, the later the settlement, the lower the price.
This has forced some sellers to require decisions during the first week of the month. In these instances price drops tended to stop at €50-80/tonne, they said.
In such a rapidly moving market, there was no guarantee that prices drops would stop in November, according to market sources.
“Customers want to match spot and try to delay [monthly] price discussions,” one seller said.
Spot activity was taking place around €850/tonne for imports, sources said.
“Converters in September bought from Asia. It was a good price at the time, but [by the time they received it] at the end of October, it cost more than European material,” according to a producer.
“We will try somehow to survive until the end of the year,” a distributor said.
The ICIS pricing reference benchmark for November went down by €100/tonne to €1,285-1,410/tonne FD W Europe and €1,010-1,115/tonne FD E Europe.
($1 = €0.79)
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