No rollover for US PET after steep PX drop

19 October 2009 23:04  [Source: ICIS news]

HOUSTON (ICIS news)--Buyers and sellers of US polyethylene terephthalate (PET) said Monday that October rollover nominations were hopeless after paraxylene (PX) contracts fell by 18-19% from September.

Protracted PX negotiations in October concluded with split settlements at 9.25-9.75 cent/lb ($204-215/tonne or €137-144/tonne) decreases, which pushed down PET costs by 5.30-6.05 cents/lb after accounting for a formulaic price adjustment in the intermediate feedstock.

US PET producers originally sought to hold pricing steady during October.

Multiple producers on Monday acknowledged 4-5 cent/lb drops on PET contracts, although participants said some consumers settled early at 3 cent/lb drops from September.

The average US PET decrease outpaced the 3-cent drop seen in Mexico earlier this month.

A US resin buyer that took a 3-cent concession in October said it was contacting its suppliers to discuss how the remaining 1-2 cent/lb disparity might be regained.

The recent spike in energy could drive PX contract prices up by more than 3 cents/lb in November, a resin producer said. But it was unclear whether PET buyers accepting smaller decreases in October could expect preferential terms in November if raw materials go higher.

US PET producers include Dak, Eastman, Indorama, Invista, Mossi & Ghisolfi, Nanya and Wellman.

($1 = €0.67)

For more on PET visit ICIS chemical intelligence
To discuss issues facing the chemical industry go to ICIS connect

By: Landon Feller
+1 713 525 2653

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