Europe PET producers mull impact of PTA FMs

15 May 2008 16:47  [Source: ICIS news]

LONDON (ICIS news)--European polyethylene terephthalate (PET) sellers were assessing the likely impact of upstream purified terephthalic acid (PTA) production issues, confident they would lead to significant June hikes, they said on Thursday.

 

“If we get real summer weather in early June then I can imagine real, real increases on PET. I am holding very firm from now on,” said one trader.

 

Both Interquisa and BP have declared force majeure on PTA production from their San Roque, Spain and Geel, Belgium sites.

 

Combined capacity of the two producers is well over half of Europe’s nameplate PTA capacity.

 

PTA is the dominant feedstock in the production of PET alongside monoethylene glycol.  

 

Indorama’s planned shutdown at its 290,000 tonne/year PTA Rotterdam site in the Netherlands in June could make the situation even more difficult, players said.

 

“We have enough raw material in stock for this week but things could become difficult from next week. So far our buyers have shown little reaction to the situation but this could soon change,” said one PET producer.

 

Settlements for May PET had been reported between a rollover and €25/tonne ($38/tonne) increase for the bulk of business, although some contracts were yet to be settled.

 

In PET production, Artenius’ 80,000 tonne/year PET plant in Volos, Greece, was reportedly down because of a general transport strike. The unit had been down since Thursday, 8 May, but restart was expected to be possible soon.

 

($1 = €0.65)

 

For more on PET visit ICIS chemical intelligence

To discuss issues facing the chemical industry go to ICIS connect

 

By: Edward Cox
+44 20 8652 3214

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly