June PET prices in the Americas down in line with global trend

15 June 2011 02:57  [Source: ICIS news]

Down arrowHOUSTON (ICIS)--Polyethylene terephthalate (PET) domestic prices in the Americas declined in June from May in line with the softening global trend, particularly in Asia, industry participants said on Tuesday.

Feedstock paraxylene (PX) contracts have fallen significantly in the US, Europe and Asia. The benchmark Asia Contract Price (ACP) for PX fell by $105/tonne (€72/tonne) in June from the previous month.

The drop in PET prices was marked in South America, which is experiencing cold weather and hence, an off-season for bottled soft drinks, sources said.

June PET prices as low as $2,150/tonne DEL (delivered) were heard in Argentina from local sources, down by $150/tonne from May.

Despite the softer demand, Mossi & Ghisolfi’s (M&G) PET facility in Suape, Brazil, is running at full rates to build inventories following the restart of the plant on 22 May, according to a company source.

Strong summer demand for PET in Mexico and the US, along with restricted availability in the US, limited the slide in prices in North America.

In Mexico, prices were heard lower by $44/tonne in June from the previous month.

BP declared force majeure on feedstock purified terephthalic acid (PTA) on 28 April following power outages at its plants in Decatur and Cooper River. The UK-based company subsequently imposed a supply allocation of 50%, which was cut to 25% on 1 June.

A company source said the restoration of PTA production is proceeding on schedule. All units should be on line by 20 June.

Following BP’s declaration of force majeure on PTA, two US PET producers declared force majeure on PET supply.

Indorama’s 432,000 tonne/year Decatur PET plant was also affected by the power outage and the company imposed a supply allocation of 35% on its customers. US-based Wellman declared force majeure on PET on 1 June from its 375,000 tonne/year plant at Pearl River, Mississippi, placing customers on a 60% supply allocation.

($1 = €0.69)

For more on PET, visit ICIS chemical intelligence

By: Ron Coifman
+1 713 525 2653

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