04 October 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--European polyethylene terephthalate (PET) producers are reducing output in response to aggressive bids from customers and low demand, sources said on Friday.
"Demand is low. We hear it from every region that they were expecting better demand and now they are with stocks that they weren't predicting," a PET reseller said.
Spanish producer Novapet has decided to bring forward a maintenance shutdown in Barbastro, Spain, from next spring to October 2013, because of the dire state of the market.
"Novapet won't produce just to have product in stock," a source at Novapet said.
Lithuania's Neo Group said it was keeping production just below 70% this month, following an enforced curtailment of output in September.
"I have a pretty healthy stock and have the ability to increase or decrease [operating rates], depending on the market. There is no sense to sit on stock," a Neo Group source said.
Prices for European material are moving down by €30/tonne ($41/tonne) to an average of €1,200/tonne FD (free delivered) Europe.
This is in response to aggressive offers on imported product, which are delaying customers' decisions to buy.
($1 = €0.73)
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