15 October 2009 16:01 [Source: ICIS news]
LONDON (ICIS news)--The European polyethylene terephthalate (PET) price for November could strengthen based on what is happening through the chain in Asia, despite October contracts not yet having settled, market sources said on Thursday.
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Asian spot PET prices reversed this week, shooting up by $80/tonne (€54/tonne) to $1,070-1,080/tonne FOB (free on board)
A trader confirmed this, adding that up to $1,100/tonne was also now under discussion.
Prior to this latest development, the lowest price for material due in from Asia in November was reported at €810/tonne, alongside levels of €840-850/tonne FD (free delivered) Europe.
“[The €810/tonne is] gone now. Maybe imports at €840-850/tonne could disappear now too,” said the producer.
European players said they were not expecting the sudden turnaround in prices and sentiment.
September demand was fairly good, and the typical high season lasted longer than expected, sources said. The season in
“Demand plays a part, but if crude stays over $70/bbl it is likely that the upward tendency [downstream] will continue,” said a producer.
“The raw material paraxylene (PX) was very low, so there was a lot of pre-buying activity. It is just virtual demand,” said a buyer, referring to the situation in
Market players said they were now wondering how long this surprising uptick would last.
“How long will it last? If customers jump on it [and start buying], it will support the increase. We were not calculating on an increase. We thought that it would go down and down into January,” said another trader.
October PET prices were yet to be finalised. Customers said they were pushing for prices below €900/tonne FD Europe and producers said were trying to cling onto anything above this.
“[A price of ] €880/tonne is my prediction for European October numbers,” said a customer.
September levels were in the mid-to-high-€900s/tonne for many, according to global chemical market intelligence service ICIS pricing.
($1 = €0.67)
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