The Northwest European polyethylene terepthalate price on Wednesday rose for the first time in nearly five months on tighter fundamentals, but expectations for the next few weeks are mixed, according to sources.
The NWE PET spot price was assessed at Eur900/mt ($1,018/mt) FD NWE Wednesday, increasing Eur10/mt week on week, marking the first rise since April 29.
The PET spot price fell rapidly over the summer, despite it being a seasonally strong period for demand. This was due to a stockbuild by converters during the first half of the year amid climbing spot prices.
The spot price fell to a seven-month low of Eur890/mt on September 9, but clambered higher this week as demand was stronger than market expectations.
A producer in mainland Europe said his spot supplies were tight due to higher demand from regular customers.
Converter stock levels were reported to be low since demand had been expected to slow in September, so they are now being forced to buy, sources said.
Sell ideas were heard pegged in a range of Eur915-935/mt this week, as producers took advantage of improved buying conditions. Several producers said prices below Eur900/mt seen last week had now disappeared.
Trader sources also pegged prices in a range of Eur900-950/mt this week.
Despite brightening conditions in a market where prices have been falling, expectations for the coming weeks are mixed.
The mainland Europe-based producer was bullish. “I expect prices for downstream PET will start to harden as I see demand high,” Planned maintenance works at PET plants will “float the spot market upward,” he said.
However, a second trader said buyers are holding back in the hope that prices will be pressured lower in October. “Activity picked up this week, but bookings are thin,” the trader said.
The first trader said prices were coming under pressure from imports, with producers in the Far East tempting European converters with competitive prices.
