02 December 2011 18:28 [Source: ICIS news]HOUSTON (ICIS)--US purified terephthalic acid (PTA) and polyethylene terephthalate (PET) prices are projected to drop 3-4 cents/lb ($66-88/tonne, €49-65/tonne) in December, in line with tumbling prices in upstream paraxylene (PX), sources said
Participants in the PTA market said PX prices for December will would fall from the November contract price of 63.84 cents/lb, a result of sliding prices in Asia and soft downstream polyester demand.
The PTA contract price is formula-linked to the monthly contract price for PX, which in turn is influenced by the PX Asian Contract Price (ACP).
The December PX ACP was reached at $1,390/tonne CFR (cost and freight) Asia, down by $110/tonne from the November ACP from the November ACP price of $1,500/tonne CFR Asia.
PET prices should follow the downward trend in December as a result of lower feedstock PTA costs and soft polyester demand, sources said. October PET prices were assessed in the range of 101.50-105.50 cents/lb.
PET market participants said end-of-year destocking and lower prices are normal in December. Prices are likely to move upward in March, following a rise in polyester demand in January, according to industry sources.
PTA and PET demand is expected to remain low in December amid healthy supply.
Major US PTA producers include BP and DAK Americas.
($1 = €0.74)
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