05 August 2010 11:00 [Source: ICIS news]
LONDON (ICIS)--UAB Orion Global PET has warned of disruption to deliveries of polyethylene terephthalate (PET) from Lithuania following a power outage at its plant and subsequent problems with the HTM heaters that feed the unit, it announced in a letter to customers on Thursday.
“We are at 65% production rate. We are expecting... that we can repair the damage in a short period and resume full production,” Stephen Short, director of business and commercial development said.
The plant in Klaipeda has a nameplate capacity of 198,000 tonnes/year, according to ICIS plants and projects.
PET availability in Europe was precariously balanced. Warm weather in many areas prompted healthy seasonal demand for bottlers and importers’ prices were relatively unattractive, buyers and sellers agreed.
“I will withdraw spot offers for the moment,” a local producer said, on hearing the news of the operational problems in Lithuania.
Higher spot prices in Asia and expectations of firming raw material costs moving into September were already putting upward pressure on European PET prices, sources said.
“If I had to bet, I would have to go to prices moving up. August stable, September definitely going up,” one customer said.
It added that prices could potentially move up quickly, but that they could also drop equally as quickly.
Spot prices from European sources were recorded between €1,050-1,090/tonne ($1,382-1,434/tonne) FD (free delivered) Europe, according to ICIS data.
July contracts recently dropped by an average of €30/tonne to €1,090-1,150/tonne.
UAB Orion Global PET is a subsidiary of Indorama.
($1 = €0.76)
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