04 November 2010 16:22 [Source: ICIS news]
VALENCIA, Spain (ICIS)--?xml:namespace>
“Suppliers are very greedy and consumers are very cautious. Suppliers want over €900/tonne for November and consumers want close to €900/tonne,” a buyer explained.
There was a single October contract deal at €806/tonne, which has yet to be followed. Were the industry to accept this figure, sellers would be seeking compensation in November and were targeting between €920-970/tonne, depending on source.
These prices would be up from September’s contract at €791/tonne FD (free delivered) NWE (northwest
Producers of PET saw their costs increase on Thursday morning as upstream paraxylene (PX) soared by €123/tonne to €928/tonne for November.
A figure close to €900/tonne on November MEG would result in an additional cost of €90-100/tonne on PET production, they said.
“We are looking for plus €100/tonne on November PET to get plus €100/tonne not to compromise at plus €50/tonne,” a PET producer commented.
This was in line with other PET sellers looking to reach €1,200/tonne FD Europe and beyond for November contracts, in order to cover their estimated cost of production.
A PET customer disagreed, saying: “Last week producers were firm and pushed a lot to have over €1,200/tonne. Now clearly it will be below €1,200/tonne because demand is extremely soft”.
The driving force behind spiraling increases was high crude and developments across the chain in
Thursday spot MEG price ideas in
($1 = €0.71)
For more on MEG, PX, PET visit ICIS chemical intelligence
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