US PET prices projected to drop 4-6 cents/lb in June

13 June 2012 23:40  [Source: ICIS news]

MIAMI, Florida (ICIS)--US polyethylene terephthalate (PET) prices are projected to drop 4-6 cents/lb ($88-132/tonne, €70-106/tonne) in June, following tumbling feedstock prices in the US and Asia, sources said on Wednesday.

Last week, market participants had projected a 2-3 cent/lb decrease in June, but a major producer said that because US paraxylene (PX) and US purified terephthalic acid (PTA) June contracts are likely to undergo a large drop following Asia, PET prices will be falling more than 2 cents/lb in June.

According to a buyer, PET June prices are likely to drop 6 cents/lb, while a US trader expects prices lower by 4 cents/lb.

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).

PTA is the principal feedstock for PET which is used to make plastic bottles and polyester fibre.

May PET domestic prices are assessed by ICIS at 83.00-88.00 cents/lb DEL (delivered), lower compared with 84.00-89.00 cents/lb for April.

PET producers in the US include DAK Americas, Indorama, Mossi & Ghisolfi (M&G) and Nan Ya Plastics.

($1 = €0.80)

By: Blanca Venegas

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