Polyethylene terephthalate (PET) spot prices in Europe are set to firm further this week, following steady increases in the past month as fundamentals continue to tighten, according to industry sources in Platts.
The Northwest European (NWE) spot price has risen from Eur835/mt (US$916/mt) in mid-February to an assessment of Eur865/mt (US$949/mt) FD NWE last Wednesday. The spot price was heard firming again this week with prices pegged in the range Eur885-900/mt, up Eur20-35/mt week-on-week.
"I see another Eur20/mt increase this week. Product is short as everybody is covering requirements after prices started to increase heavily," a trader source said on Tuesday.Fundamentals are tightening as producers have reduced supply on the spot market, while converters have stepped up buy activity. A major European producer confirmed that they were not supplying PET on the spot market, as there was "high demand from our regular clients," referring to contractual obligations.
Spanish Novapet confirmed Wednesday that it will undergo maintenance at its 130,000 mt/year No.3 PET line in Barbastro in Q2 2016, which will further reduce supply. Demand was heard firm, as buyers secure volumes in a tight market. "The weather is supporting demand," another source added. Prices were heard boosted by higher feedstock prices in March.
The March paraxylene contract price was fully settled at Eur690/mt, up Eur10/mt, and the March monoethylene glycol contract price was fully settled at Eur711/mt, up Eur11/mt.
In the UK, prices were also heard rising. The UK PET spot price was pegged in the range GBP675-720/mt on Wednesday by a trader, a GBP5-50/mt increase from Platts' assessment last Wednesday at GBP670/mt FD UK.