Even the most delightful party sometimes comes to an end. Over the past few months, Europe’s PET producers have had much more fun than they have had for a long time, since they succeeded in increasing their margins.
This good mood rapidly deteriorated again in October 2017, however. On the one hand, contract prices in Asia fell, prompting the arrival of one-third more imports, with aggressive price labels. On the other hand, the summer beverage season, and hence bottle season, quietly came to an end, prompting a slump in demand.
Against this background, PET prices logically moved downwards, even if the decline has not yet become dramatic. This would seem to clearly indicate a turning point in the downward trend that has been prevailing on the world’s oversupplied polyester markets for many years.
For November, at least, further price reductions were expected, even if upward tendencies are evident in the Americas due to discontinued production at M&G.