European PET Market Finds Support as Ultra-Low Offers Fade

Europe's bottle-grade PET market has entered August with firmer pricing after three months of sustained declines. Suppliers have started seeking modest price increases as higher feedstock costs provide support, while the lowest offers seen during July are becoming increasingly difficult to find. Even so, buyers remain cautious and are waiting for the latest MEG and PX contract settlements before making larger purchasing decisions.

Early August offers across Italy and Northwest Europe have generally moved up by around €20–50/ton compared with July. Producers say the recent recovery in raw material costs has strengthened their pricing position, although weak buying interest and comfortable supply continue to limit the scope for larger increases. Most sellers acknowledge that prices above €1,300/ton remain difficult to achieve under current market conditions.

Market participants report that offers below €1,250/ton, which were available during July, have largely disappeared. Buyers expect suppliers to continue targeting slightly higher prices but remain unconvinced that a stronger upward trend can be sustained, pointing to adequate inventories and sufficient regional supply.

Many processors are delaying fresh purchases until feedstock contract prices become clearer. Although demand from the beverage and bottled water sectors remains steady, consumption is still below the stronger seasonal levels seen in previous years, resulting in cautious procurement strategies.

Imported PET continues to have only a limited impact on the European market. Most overseas offers remain uncompetitive, prompting buyers with immediate requirements to source material locally. However, some market participants believe imports could become more competitive later in the quarter if market conditions change.

With the summer holiday season reducing trading activity across Europe, market expectations remain largely unchanged. Most participants anticipate stable prices or only modest increases through the rest of August, while the direction of the market in September is expected to depend on feedstock costs, crude oil movements, and post-holiday demand.

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