Long capacity drives more US PET to Latin America

13 April 2010 23:01  [Source: ICIS news]

HOUSTON (ICIS news)--Overcapacity of polyethylene terephthalate (PET) in the US has prompted aggressive discounting and allowed US suppliers more competitive positions in Latin America, market sources said on Tuesday.

US polyethylene terephthalate (PET) exports jumped 28% in January-February 2010 compared with the 2009 period, according to data from the US International Trade Commission (ITC).

Higher export rates in the US - 70,406 tonnes in the first two months of 2010 compared with 55,166 tonnes in the 2009 period - were driven largely by increased demand in Latin America, home to seven of the top 10 US PET export markets, ITC data showed.

The past year has also seen the start-up of Indorama’s two production lines at the new 432,000 tonne/year Decatur PET plant in Alabama.

This combined with expansions and planned builds elsewhere in North America has led to a net capacity that far outweighs US demand under recent circumstances, said US producers and market observers.

Higher trade levels between the US and Latin American resin buyers could be traced to a relative cost advantage of US material compared with PET from Asia, where relative market balance allowed swifter passage of cost-driven hikes than in the US.

Deliveries of US PET to Latin American ports totalled 30,140 tonnes, or 43% of all US PET exports during the first two months of 2010, the ITC said.

US PET suppliers include Dak, Dupont, Eastman, Indorama, Invista, Mossi & Ghisolfi (M&G), Nanya and Wellman.


US PET EXPORTS

 

Feb-09

Jan-10

Feb-10

Jan-Feb 2009

Jan-Feb 2010

% chg

Total

26,347

35,453

34,953

55,166

70,406

28

Canada

10,713

7,588

8,175

21,165

15,763

-26

Peru

201

4,000

3,640

1,601

7,640

377

Netherlands

2,438

3,079

2,783

3,437

5,862

71

Mexico

5,231

3,837

2,678

11,673

6,514

-44

Chile

1,200

2,100

2,373

2,241

4,473

100

Argentina

2

1,097

2,084

2

3,181

151,746

Uruguay

1,000

2,332

1,593

3,067

3,925

28

Ecuador

440

420

1,580

440

2,000

354

China

701

1,687

1,403

2,006

3,090

54

Guatemala

700

1,019

1,387

1,160

2,406

107

All others

3,722

8,295

7,257

8,374

15,551

86

($1 = €0.74)

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



AddThis Social Bookmark Button

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

ICIS news FREE TRIAL
Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index