23 January 2009 23:59 [Source: ICIS news]
LONDON (ICIS news)--Most January polyethylene terephthalate (PET) prices dropped €20/tonne ($27/tonne) because of low demand and surplus material, but increases of up to €50/tonne were expected in February, buyers and sellers said on Friday.
“We pulled prices down to be competitive...I am thinking plus €50/tonne for February,” a producer said.
January contracts slipped to €770-860/tonne free delivered (FD) ?xml:namespace>
These figures were also applicable for some of the spot activity this week, both for imported and domestic material, sources said.
With paraxylene (PX) looking firm, and crude creeping up again, the value of February PET could see a revival, sources said.
“It [the price of PET] will increase by between €0-40/tonne...I hope it will be €20-30/tonne in February,” one buyer commented.
Operating rates in
“We are completely sold out,” he added.
The big question was how demand would develop. Pre-buying was noted in early January, but this activity has since fallen, sources said. The sheet market was performing better than the pre-form sector.
Pre-forms had been under particular duress, but some sources said they thought the situation was changing.
“There are signs of recovery in pre-form, but not in the still mineral water business,” according to one supplier.
“I am afraid it [new Middle Eastern material] could be very bad for
February negotiations had not yet begun.
($1 = €0.77)
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