PET December 2019 Price Review

Although the paraxylene reference was slightly firmer at the end of October, the European PET market was not really concerned about pursuing cost discussions in November 2019. 

With demand remaining subdued, spot prices approached the €800/t ($886) mark under the additional pressure of attractive import offers. Very high volumes are also to be found in this same range, further widening the gap with the small volumes subject to monthly contracts that are covered in PIE reports, particularly since the reductions here tended to be more moderate. 

All in all, the PET market has evidently returned to the oversupply mode that to a large part prevailed for many years before consolidation took hold in 2017 and, coupled with China’s ban on the import of PET waste in 2018, temporarily brought about an exceptional situation. 

Irrespective of what will presumably be a far from dynamic development in costs, further reductions were thus expected for December, particularly since demand remained very weak.