19 January 2012 18:45 [Source: ICIS news]
LONDON (ICIS)--The price of European polyethylene terephthalate (PET) is increasing daily as customers buy what they can from local suppliers ahead of prices potential firming again in February, sources said.
"Last week prices were lower. Every two or three days we revise our offers,” a producer said.
Weekly domestic PET has moved up to €1,290-1,320/tonne ($1,654-1,692/tonne) FD (free delivered) Europe, from the €1,250-1,300/tonne range seen earlier in January, according to data from ICIS.
Spot offers are increasing to €1,350-1,370/tonne versus some bids reportedly at €1,320-1,350/tonne. The highest offer heard was €1,400/tonne although a second seller said that a bid of €20-30/tonne below this would translate into a sale.
“Producers are sold out for January,” a third producer said, echoing comments made by others.
Low prices and a spate of pre-buying in November and December, coupled with customers’ reliance on domestic product because of the low level of imports, has resulted in a tighter market, buyers and sellers agreed.
Imports are scarce because of unfavourable exchange rates and production costs look likely to increase in February, according to industry players.
“With exchange rates...it’s really not possible to import,” a trader said.
Production rates at PET plants have increased after having been reduced either for maintenance or because of market conditions in the fourth quarter of 2011, according to sources. Production problems in the Middle East are recorded but not confirmed.
($1 = €0.78)
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