News #010

After the drop in oil, the market reacted quite well and some buyers covered themselves with imported material given the inability of European producers to guarantee material on the spot market.

The expectations of PET users there is the possibility that prices will fall as a result of the sudden collapse of oil, unfortunately, although the component of raw materials may suffer a decline, there are other variables that are influencing and will affect the price of PET in the next months.

The most common of these variables is still logistics, which continues to be extremely difficult to manage, both due to the still high prices of the containers and their unavailability. On the other hand, another crucial factor is the supply / demand: although the world demand for pet has fallen due to the pandemic, also the supply has decreased due to the difficulty of producers in finding raw materials, this is the classic “boomerang” effect.

Recently, the information got on the market is the issue of China regarding the operational rate of the factories related to possible closures in order to reduce CO2 emissions in the environment; in addition to the possible extension of the holidays linked to the Chinese New Year, which will surely put a strain on the availability of all raw materials. We expect an extremely complex first quarter of 2022.