Northwest European polyethylene terephthalate prices are expected to fall in January on lower contract prices for paraxylene and monoethylene glycol, two key feedstocks for PET.
The PET market is yet to pick up from the holiday season, but sources expect prices to fall through January on lower PX and MEG contract prices. This is in spite of expected restocking which will support demand this month.
The NWE January PX and MEG contract prices have not settled yet. Sources expect a decline in both contract prices.
The January PX CP is expected to decline in line with lower demand in December in the spot market. The PX spot price averaged $677/mt FOB ARA in December, down from an average of $703/mt in November.
In addition, there was one PX settlement in Asia at $750/mt, which was a $30/mt fall from its last major settlement at $780/mt, pointing to weaker market conditions globally. Europe often looks to Asia for direction.
A source expected MEG to fall from its last settlement at Eur820/mt. The MEG CP may get direction from the January ethylene contract price which settled at Eur900/mt ($966/mt), a Eur27.50/mt monthly fall.
In December, NWE PET net contract prices averaged Eur928/mt ($996/mt), according to Platts data. Spot prices averaged Eur918/mt ($985/mt).
However, both the net contract and spot prices were pegged below Eur900/mt ($966/mt) this week.
The net contract price was pegged around Eur895/mt ($960/mt), while the spot price was pegged at a discount to the net contract price and pegged in the range Eur870-890/mt ($933-955/mt).
