02 March 2012 20:18 [Source: ICIS news]
LONDON (ICIS)--The polyethylene terephthalate (PET) market has started to flag in some areas of Europe as the rush to buy subsides.
"There is a lull," according to a reseller. "People have material and they are not in a rush to buy."
This follows a spate of pre-buying and while not everyone was able to pick up product in advance of the traditional high season for bottling, the amount purchased from late 2011 to early February was more than usual.
"The length from material in stock is now used in machines. Therefore they have to buy less [PET now]," a customer said.
The season is yet to kick in and there is a lull in activity, but buyers and sellers said this week that they expect more activity and potential price increases to emerge in April, if not before.
"What was supposed to happen in March will happen in April," the customer said, adding that pressure from feedstock prices could result in higher PET prices.
The domestic price range is wider at €1,350-1,415/tonne ($1,800-1,887/tonne) FD (free delivered) Europe, which incorporates the variety of spot and freely negotiated values recorded in this week's market.
"The situation was a bit bullish with €1,400/tonne and above. Then the bull ended, then it stabilised and now it's been corrected," a producer said.
On the other hand, a second seller said he was still selling without any difficulty and prices above €1,400/tonne.
($1 = €0.75)
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