05 December 2013 17:15 [Source: ICIS news]
LONDON (ICIS)--The price of European polyethylene terephthalate (PET) has stopped falling and may have turned a corner, sources said on Thursday.
“We know prices went down for the last 10-12 weeks. Now it's stopped a bit, and we even see some small increases,” a reseller said.
Prices began dropping in September, largely due to cheaper imports. Aside from exceptional instances where sellers dumped material below €1,120/tonne ($1,514/tonne) FD (free delivered) Europe, prices plateaued through the second half of November and into December.
It is the intention of producers to pull prices up from the bottom. They have managed to a degree, particularly where in exceptional instances prices were at €1,080-1,110/tonne.
“We are sold out until mid-January because of reduced capacity and the very big activity in the market. Everybody is very active. They realised that prices have already hit the bottom and now they say they need [PET] immediately,” according to a producer.
While it is uncertain how much imported material is due to arrive in the New Year, there is talk of it keeping domestic price increases at bay.
“Nobody expects an increase in December... for sure in January there will be many low-priced imports coming in so it is not easy for European producers to move prices up,” a customer said.
The outcome remains to be seen.
($1 = €0.74)
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