MOSCOW (MRC) -- Prices of Russian polyethylene terephthalate (PET) rose by an average of Rb1,000/tonne in the domestic market this week, according to ICIS-MRC Price report.
Market participants said the November price rise was expected. The fall of the rouble exchange rate against the dollar led to an increase in purchase prices of imported PET. Local producers raised prices of PET chips, despite weak demand in the spot market.
PET prices were heard in the range of Rb64,000-65,000/tonne CPT Moscow, including VAT, in the domestic market. However, some buyers reported the availability of PET quantities in the market at Rb62,000/tonne CPT Moscow, including VAT, a week ago.
Sellers said the price increase was fully justified and was caused by both higher prices of imported PET (in roubles) and the increased production costs (for plants that use in their production imported PTA and MEG). At the same time, the price difference between Russian PET and Asian material was about Rb5,000/tonne.
Demand remained weak in the market because of high inventories of finished products at converters' warehouses and sluggish sales of water, soft drinks and beer in the low season. However, demand for Russian material has been recovering gradually due to attractive prices. Producers said they anticipate a further rise in prices for their products.
As reported earlier, subject to customs clearance (given the rouble exchange rate from Rb41 to Rb42.5 per USD1) and the payment of VAT, the cost of procurement of such chips could have been Rb68,000-73,500/tonne CPT, including VAT, .
MRC