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Regional split in European polyethylene terephthalate spot demand: sources

https://www.chemnet.com   Jul 30,2015 Platts
Buying activity for polyethylene terephthalate is differing by region due to contrasting weather and converter stock levels, sources said Wednesday.

Fine weather in early July supported PET demand across Europe, but this was short-lived in some regions where temperatures fell, dampening demand.

"Demand is not so high," a buyer in Northern Europe said Wednesday.

In Northern Europe, rain prevailed and temperatures averaged 20 degrees, the source added.

But uptake in the UK was reported to be firm, despite cooler weather.

"UK weather is poor. However, there is no sign of impact on demand with sheet and bottle producers appearing to be busy," a UK PET source said. "If, however, the cold weather remains for another three weeks, the season could close early."

In Southern Europe, one buyer in the region said hot weather supported demand. "Demand is very good", the buyer said.

Nevertheless, another source in Southern Europe was sceptical, saying demand was strong further downstream at the end user level but not for PET resins..

"[Converter] stocks are being used", the source said, adding that PET converters continued to deplete inventories which they accumulated through large purchases earlier in the year.

Another source said in Southern Europe, converters buy when the price is low and not necessarily when they require product.

"In some cases a whole year of product can be purchased and stored," he said. "[Converters] will wait until the price is right and replenish stocks."

The NWE PET spot price was heard in the range Eur1,020-1,040/mt ($1,128-$1,150/mt) this week, while the UK PET spot price was heard in the range GBP740-750/mt ($1,157-$1,173/mt).
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