Latin America PET prices level out after early-June decline

21 June 2011 22:47  [Source: ICIS news]

HOUSTON (ICIS)--The polyethylene terephthalate (PET) market in Latin America stabilised after prices fell earlier in June in line with the global trend in resin and feedstocks, industry sources said on Tuesday.

PET demand for bottles-grade material remained slow in South America because of moderate soft-drink consumption during the ongoing off season, but demand was strong in North America, including Mexico, driven by hot summer temperatures, sources said.

In North America, Mexico included, PET availability was improving, as BP’s feedstock purified terephthalic acid (PTA) production was being restored at plants in Decatur, Alabama, and Cooper River, South Carolina. The first Decatur unit started PTA production on 12 June, the second at the end of last week, and the third was scheduled to come on stream by 20 June. The Cooper River plant was scheduled to come on stream this week.

BP intended to raise allocation from 25% to 50% this week, and hoped to have 100% allocation in place by the end of this week.

The PTA allocation will be removed once BP is certain that all plants are fully operational and able to supply the necessary quantities of PTA to PET manufacturers.

BP’s declaration of force majeure on PTA compelled two US PET producers to declare force majeure on PET supply.

For more on PET visit ICIS chemical intelligence

By: Ron Coifman
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