LONDON (ICIS)--Those who are in the market to buy additional polyethylene terephthalate (PET) volumes in Europe are presented with offers far above what they had anticipated, sources said on Friday.
“I received updated offers. Then, I really was absolutely shocked,” a buyer said.
Prices have jumped up at a surprising rate, to the point where the €1,200/tonne FD (free delivered) Europe barrier has been broken for the first time since 2013.
Until recently, demand was disappointing, so now there are plenty of buyers scrambling for what is considered to be expensive material.
With so much under contract, and buyers offtake maximum where possible, additional spot volume is scarce.
“If you need it, you should forget about the price,” a second buyer said.
The Asian market is hot right now, so buyers cannot even access bargain imports.
They are reliant on a limited number of suppliers.
“There are no alternatives. People have to buy now. Anything above contract volume will need to buy at a spot price, which is now €1,200/tonne for May and June,” a supplier said.
The force majeure on upstream purified terephthalic acid (PTA) is compounding the problem.
PET is used in fibres for clothing, containers and bottles for liquids and foods, thermoforming for manufacturing, and in combination with glass fibre for engineering resins.
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