Polyethylene terephthalate bottle-grade chip end-users from regions like Europe, the Middle East and South America are starting to seek cargoes for up to June 2012 with current prices at one-year lows, Platts data shows.
FOB NEA PET was assessed at $1,425/mt on Wednesday, down $3/mt on the week while FOB SEA PET was assessed at $1,440/mt, down $5/mt from last Wednesday. The last time PET prices were at this level was on December 1, 2010, where FOB NEA was assessed at $1,425/mt and FOB SEA, at $1,440/mt.
"They think prices are low, and they want to buy now," said a source at a producer in Southeast Asia who had a rush of enquiries. Volumes being discussed are understood to be 2,000 mt and above, with one 10,000 mt request seen.
A South Korean producer source noted that the buying ideas were at $1,440/mt FOB NEA, especially from Europe and the Middle East.
"Some want December cargoes, but others will buy even for next June," he said, adding that June bids at present prices were unlikely to be picked up by sellers given the expectation that prices will start rising once the buying season gets into full swing from the second quarter onward.
But not all producers were immediately responsive to the buying interest.
"We haven't started selling. If there is a rebound in January, there will be a big difference. We will discuss in a week's time. It's too early now," he said.
