25 February 2011 23:59 [Source: ICIS news]
“Potentially €110-120/tonne ($153-167/tonne) is a fair [increase from January to February] as it is relative to the PET market conditions,” a customer acknowledged.
Domestic figures for February were reported as high as €1,520/tonne with sellers securing €1,600/tonne for spot, sources said.
This was up nearly €300/tonne since January’s low €1,300s/tonne, according to data from ICIS.
“From January to February we went up by €150/tonne. We recuperated what we lost in January,” a producer said.
“March [PET pricing] is bound to be very much higher than it is now,” a second producer said.
The market was struggling to find product and to meet obligations, sources agreed.
“Everybody is sold out and looking for material…Customers have no other choice than to accept [the higher prices],” a trader confirmed.
Due to the scarcity of PTA, Artenius declared force majeure (FM) on PET because it could not get enough feedstock to its European sites. A source there said it was unlikely to be lifted before the end of March. Artenius had limited allocation to 65-80% because of a lack of PTA.
The unit will lose a total of 2,000 tonnes during the shutdown which will also be used to carry out some maintenance work, according to a company source. It added that there was sufficient stock to supply contract customers.
A planned maintenance shutdown at one of Neogroup’s 155,000 tonne/year PET lines in
Other PET units were operating at 20-40% below capacity, sources estimated.
“Since the beginning of the year I am always fighting for material,” a customer commented.
($1 = €0.72)
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