Mexico PET dragged lower in October on weak demand

29 September 2009 21:08  [Source: ICIS news]

HOUSTON (ICIS news)--Weak demand and falling feedstock costs have placed downward pressure on polyethylene terephthalate (PET) resin prices in Mexico, a regional producer said on Tuesday.

Although PET makers will seek to extend September price levels into October, a decrease of 2 cents/lb ($44/tonne, €30/tonne) is possible, the producer said.

September contract prices for PET in Mexico were in a range of 61.30-66.30 cents/lb ($1,351-1,462/tonne), according to ICIS pricing.

Buyers in Mexico said they would push for a decrease of the same magnitude for the bottle resin’s variable production costs, which some estimated at more than 4 cents/lb.

Seasonal demand trends dictate a softening of order requirements through the remainder of 2009, with only a moderate boost in demand linked to end-of-year holidays.

Participants across the industry would likely draw down inventory levels ahead of the year’s end, the producer said, adding that PET manufacturers would target exports to South America and follow with operating rate cuts.

Sources said a producer in Mexico had already idled one of its production lines.

North American PET producers include Eastman, DAK Americas, Indorama, Invista, Mossi & Ghisolfi (M&G), Nan-ya and Wellman.

($1 = €0.68)

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By: Landon Feller
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