Europe PET producer targets €50/tonne May hike on short supply
22 April 2010 17:16 [Source: ICIS news]
LONDON (ICIS news)--A major European polyethylene terephthalate (PET) producer is determined to push through a €50/tonne ($67/tonne) price increase to its customers for May deliveries in order to reflect the current shortage, it said on Thursday.
“I am going €50/tonne up as of 1 May and [customers] will have to take the offer now or we will take it out,” it declared, adding that the lack of availability in
Other sources had already speculated on additional increases coming into force in May and possibly in June, with one seller of imported material expecting a difference of €60-80/tonne compared with April.
Contract prices moved up by €20-50/tonne from March to April, depending on source. The majority of confirmed business took place at €1,100-1,140/tonne FD (free delivered)
“From March to April, regular purchasers driven by the market and who buy from
Soaring spot prices were indicative of the imbalance between demand and supply resulting from a lack of imports and European outages, buyers and sellers agreed.
From around €1,100/tonne in early April, spot was now on the table as high as €1,250-1,300/tonne, though these prices were yet to turn into regular sales, sources said. Close to €1,200/tonne was possible to achieve during the second half of the month, they added.
A customer said it believed prices would remain unchanged in May and June and that it was hoping for a decrease thereafter.
“A few days ago the market was in denial. Now it’s scared,” a trader said.
($1 = €0.75)
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By: Caroline Murray
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