29 July 2010 22:28 [Source: ICIS news]
HOUSTON (ICIS)--The price for US bottle-grade polyethylene terephthalate (PET) dropped by an average of 2 cents/lb ($44/tonne, €34/tonne) in July with the degree of decrease depending on where a buyer's contracts were in June, sources said on Thursday.
The assessed fall in prices put the July contract price range at 68.96-71.96 cents/lb DEL (delivered).
Sources said that negotiated July contracts fell by 1.50-2.50 cents/lb for most buyers, others received decreases of 3.00 cents/lb.
Transactions at minus 3 cents/lb were made for buyers with deals from producers that stuck to only minus 2 cents/lb in June. The market averaged a 2.50-cent/lb fall in June.
"June settlement prices were above where they should have settled and part of that got taken out of July," a buyer explained.
The real pricing evaluation was the two-month average coupling June and July, which were cumulatively down 4.50 cents/lb on average, buyers and sellers said.
Falling feedstock costs have driven PET prices down despite demand being at its seasonal peak amid hot summer weather driving bottled beverage sales.
A year-over-year uptick in travel and above average temperatures for much of the summer has also spurred demand, a producer said.
"The water market is very robust," the supplier said.
As high PET run rates start to trend downward next month, market players were anticipating a rollover for August prices or a slight decrease. But visibility on its direction was unclear until August PX contracts get done.
US PET producers include Dak, Eastman, Indorama, Invista, Mossi & Ghisolfi (M&G), Nanya and Wellman.
($1 = €0.77)
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