Page 184 - CW E-Magazine (2-1-2024)

Special Report Special Report

Supply chain adversity sparks panic in Europe ket desperate to see improved demand –
one where the hot topic has been
PET/PTA markets rationalisation in the European industry.
So, whether or not the consternation
ctual and anticipated shipping CAROLINE MURRAY sticks, it brings welcome respite to a
delays caused by tensions in market that was practically on its knees.
Athe Middle East are exert- Senior Editor for PET in Europe
ing pressure on the polyethylene tere- ICIS PET resins can be broadly classifi ed
phthalate (PET) value chain. into bottle, fi bre or fi lm grade, named
since shot up to $4,000 per 20-ft con- according to the downstream applica-
“On one side it’s a gift from heaven tainer for January shipment. tions. Bottle grade resin is the most
for the European PET producers, but commonly traded form of PET resin
on the other side it may be a curse,” a Another warned that the market is and it is used in bottle and container
source said. “crazy” enough that even higher rates packaging through blow moulding and
could emerge. thermoforming.
Indeed, sellers are already indi-
vidually seeking higher PET prices for Recent history showed freight rates Fibre grade resin goes into making
January. from Vietnam close to $6,000 per 20-ft Source: Xeneta (updated till 18 December 2023, mean values used). polyester fi bre, while fi lm grade resin
Some vessels have already been container in the summer of 2022, but a pact kicking in on January markets is lots of new enquiries…We’ve closed is used in electrical and fl exible pack-
“I’m getting frightening information: rerouted and will provoke delays of steep fall followed, according to freight high. on huge volumes,” a PET seller said. aging applications. PET can be com-
most import offers are on hold. European 20-30 days. analyst Xeneta. pounded with glass fi bre for the pro-
[suppliers] plan on increasing the price “We’ve seen the reaction, we have This all comes on the back of a mar- duction of engineering plastics.
dramatically, because of the Suez Canal Shipping companies are incurring A source said it had seen up to
situation and delays,” a buyer said. additional costs as they divert cargoes, $4,000 per 20-foot container quoted for
and prices have been modifi ed up to containers from China.
Of course nobody knows how refl ect this. Chemical Weekly | Import-Export Data
intense the problem really is and how Some believe shipping lines are tak-
long it will last. Prices of $2,400 per 20-ft container ing advantage of the situation, after a Market Surveys | Directories
from Vietnam to Europe were heard, up lacklustre period for demand.
The timing of a fresh shipping crisis from three-fi gure prices less than two
is terrible, what with market partici- months ago. A trader said the price had The probability of the freight im- Business Forums | Expositions
pants ready to step away from their
offi ces for the holidays.

“We are not offering and will open The only organisation in India catering exclusively to the needs of the entire chemical industry
the shop again next year when we know
about availability and costs,” a producer
said. Contact:

Raw material purifi ed terephthalic
acid (PTA) deliveries may also be SEVAK PUBLICATIONS PVT. LTD.
affected.
602-B, Godrej Coliseum, K.J. Somaiya Hospital Road,
“For sure companies that buy Behind Everard Nagar, Sion (E),
imported PTA will be impacted. In
Europe there are approximately 0.9-mt Mumbai 400 022.
of PTA coming annually from Asia, Phone: +91-22-24044471 / 72
and none of the European PTA pro-
ducers can react overnight,” a second Email: admin@chemicalweekly.com
PET producer said. Source: Xeneta (updated till 18 December 2023, mean values used).

184 Chemical Weekly January 2, 2024 Chemical Weekly January 2, 2024 185

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