The Northwest European polyethylene terephthalate market has strengthened this week, with prices supported by tightness in the monoethylene glycol sector which has prompted pre-buying activity, sources said.
The NWE PET spot price was pegged in a Eur910-960/mt range this week, with sources saying December prices may rise further. The NWE PET spot price was assessed last Wednesday at Eur905/mt FD NWE.
“Prices are moving up”, a PET seller said, adding the price of MEG — a feedstock for PET — has been lifted by production issues which were also contributing to tightness in the PET market. Delivery of large parcels of MEG to customers have been postponed, the seller said.
The European MEG market has been tight, as a lack of imports has coincided with the production issues.
Ineos declared force majeure on MEG, co-product diethylene glycol, and feedstock ethylene oxide November 9, a company source said Wednesday.
“The issue happened in Cologne but supply from our three sites to our customers was put on allocation,” the source said.
Ineos was not available to comment. The company’s Dormagen plant at Cologne, Germany, has annual EO capacity of 290,000 mt and 150,000 mt of MEG.
Sasol has also been experiencing production issues, market sources said.
The company was not available to comment. Its plant at Marl, Germany, has EO capacity of 216,000 mt and MEG capacity of 15,000 mt.
There was some easing of supply as BASF returned to normal operating levels Monday at its site in Antwerp, Belgium, a company source said.
The company would not comment. BASF’s Antwerp plant has EO capacity of 500,000 mt and MEG capacity of 350,000 mt.
In total, up to 13.7% of EO capacity and 8.57% of MEG capacity is affected by production problems.
Spot prices of MEG surged Eur100/mt Friday to Eur950/mt FCA NWE.
“We are pre-buying a little bit as producers are saying December/January prices will go up”, a converter said.
The first seller said he had already received orders for the beginning of December, as converters secure volumes.
MEG production issues have applied supply pressures to a market which has already seen tightness in the fourth quarter amid turnarounds as well as the low imports.
Several sources have said that a weaker euro has made imports uncompetitive. “Imports are unattractive,” the converter said.
“The PET market will be extremely balanced or short for December”, the first seller said.
