16 August 2012 17:44 [Source: ICIS news]
LONDON (ICIS)--Bullish upstream markets and a lack of imports are spurring European polyethylene terephthalate (PET) producers to attempt price increases for September, sources said on Thursday.
"I have heard of increases in September of plus €50/tonne ($62/tonne)…I feel the market is a bit tight, especially since there are no spot offers," a customer said.
August prices are in the €1,200s/tonne FD (free delivered) ?xml:namespace>
"Pricing for August was approximately €1,250/tonne, expectations for September [are] €1,290/tonne," a producer said.
A second producer is targeting September prices in excess of €50/tonne compared with August.
"I expect an increase again in excess of €50/tonne as [upstream] PX (paraxylene) and MEG [monoethylene glycol] will increase forecast €50/tonne on both. [Prices of] imports are rising also so we won’t be under pressure," according to the second producer.
Customers acknowledge that their choice of supplier is limited to Europeans and that production costs may increase, but question whether demand and the economy in general, can support further increases.
The traditional bottling peak season which was delayed this year, is drawing to a close, so those in need of stocks are bound to be cautious, one buyer said.
"[August] demand is a lot lower than July…We are not making stocks because we know that the end of the season is close," a customer said.
"Prices could go up in September unless there is a sudden drop in raw material [prices], but it doesn't look like it," the customer surmised.
($1 = €0.81)
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