11 July 2013 12:16 [Source: ICIS news]
LONDON (ICIS)--The cost of polyethylene terephthalate (PET) in Europe dropped at the end of June/beginning of July, only to climb up again as the weather heated up, sources said on Thursday.
"…the weather is pretty good so they started to raise prices again," a customer said.
Sellers became nervous at the end of June as the cold weather persisted and the peak PET bottling season seemed doomed to fail. They dropped their prices in much of Europe to below €1,200/tonne ($1,539/tonne) FD (free delivered), and values of €1,170-1,180/tonne crept into the market.
Buyers speculated on prices dropping further, and waited for €1,130-1,140/tonne, which never emerged.
Suppliers are taking advantage of this and the warm weather, pulling their prices back up closer to €1,200/tonne. Above this is also applicable to smaller accounts or where logistic costs are more expensive.
"Last week and the week before it was very cheap but nobody was buying because they bet it [would] roll over. But now with energy going up dramatically, crude oil and so on, seemingly [there is] not anymore any cheap material left," according to a second buyer.
Buyers are more likely than they have been recently, to take a risk and buy attractively priced imports for delivery in early September, sources said.
It remains to be seen whether the renewed interest in demand for PET and current European prices are able to be maintained through the course of July.
Crude futures retreated on Thursday pressured by concerns over the health of the world economy.
($1 = €0.78)
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