30 June 2011 20:07 [Source: ICIS news]
June prices were assessed at 98-102 cents/lb ($2,161-2,249/tonne, €1,491-1,552/tonne) DEL (delivered), representing a decrease of 1-2 cents/lb.
Producers initially targeted rollovers for all June contracts, but adopted a more moderate approach as raw material costs fell and PET supply began to improve toward the end of the month.
Sellers said they had concluded a mixture of rollovers and decreases of up to 1-2 cents/lb for freely negotiated June contracts.
Buyers’ expectations followed a similar trend, with rollovers being widely anticipated earlier in the month, but decreases increasingly being targeted in recent weeks.
The imminent arrival of competitively priced Asian imports was one of the reasons for the more aggressive approach taken by some buyers.
One buyer said imports would likely be a feasible alternative for the rest of the summer, adding that it had secured domestic price decreases of up to 4-5 cents/lb, although these levels were not confirmed by other market participants.
In contrast, a major producer said it had rolled over all of its freely negotiated June prices, based on tight supply.
Sellers indicated that a return to a more balanced PET market in the coming weeks would probably result in price decreases for July contracts.
Market sources said that Indorama has raised the allocation on PET supply from its 432,000 tonne/year plant at Decatur, Alabama, to 45% from the previous level of 35%, but this could not be confirmed.
US PET producers include DAK Americas, Indorama, Mossi & Ghisolfi (M&G) and NanYa.
($1 = €0.69)
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