Buyers and sellers of virgin polyethylene terephthalate expect prices to continue firming in May as a result of tight supply and possible rising costs of raw materials, sources said.
The European spot price of PET was assessed at Eur995/mt ($1,127/mt FD NWE on Wednesday, up Eur15/mt from Wednesday.
Spot prices have now risen 20% from the six-year low of Eur835/mt FD NWE assessed on February 10.
One buyer noted that a rise in PET feedstocks paraxylene and monoethylene glycol could push PET prices up in May, but added: “It seems that imports are coming into EU and that could change EU PET producers’ price politics for May.”
The buyer also said that a Eur20/mt increase in net contract prices looked likely for May.
Expectations for May are aligned with at least one European producer, which said that an increase of Eur20/mt for PET contract prices was on the cards.
“We are working on a Eur20/mt increase for May in line with raw material expectations… Imports still not making an impression although weaker dollar should impact, believe Asia is quite well served locally with high demand,” the producer said.
A second producer source noted that South Korea — the largest exporter of PET to Europe — was not taking orders from Europe for May.
“They seem to be shifting their attention and volumes more towards the NAFTA [North America] region than Europe,” the second producer said.
