Polybutylene terephthalate Europe

European polyethylene terephthalate (PET) producers are seemingly fighting a constant battle to improve dire margins. Prices edged up from €1,250-1,300/tonne FD (free delivered) Europe in November to €1,290-1,320/tonne in early February.

Major raw material purified terephthalic acid (PTA) is long, yet the near relentless upstream paraxylene (PX) price increases continue to put upward pressure on prices downstream.

The contract price of monoethylene glycol (MEG), PET’s secondary feedstock, offered some relief in November and December, only to start climbing again in January and February.

Overall however, PET production costs have remained firm since the summer.

The message that PET prices were likely to increase in the New Year because of a reliance on domestic material and continued strength upstream, resulted in customers pre-buying where possible in the fourth quarter of 2012.

At the start of 2013 there was a flurry of restocking activity by those accounts that had destocked for year-end.

Subsequently, a lack of imports, a precariously balanced situation in Europe and global economic woes did little to bolster buyers' demand.

There may not be a choice but to pay the higher prices on offer, however, as talk of plant maintenance schedules clashing with a lack of cheap imports could compound the firm environment.

Updated to mid-February 2013