US PET poised to fall in April with mixed expectations

11 April 2013 22:51  [Source: ICIS news]

HOUSTON (ICIS)--Market players have mixed expectations on how far US polyethylene terephthalate (PET) prices will fall for April material, with declines projected at 4.0-6.5 cents/lb ($88-143/tonne, €68-110/tonne), producers and buyers said on Thursday.

One producer said it is too early yet to tell about April pricing. Meanwhile, several market sources are in consensus that 5 cents/lb is going to be the end result of April declines.

Those on the side of a decrease closer to the 4 cent/lb end point to anticipation for price increases in May, higher-cost raw materials moving forward and the fact that regional producers need margin improvement.

The PET trend follows decreasing feedstock prices in monoethylene glycol (MEG) and purified terephthalic acid (PTA) via the upstream paraxylene (PX).

For March PET, buyers and sellers said they closed their deals at the end of that month at 2-2.5 cents/lb lower. At least one producer closed deals at 1-2 cents/lb lower, depending on the size of the customer, he said.

US PET is in the range of 89.50-94.50 cents/lb SBM (stretch-blow moulding) DEL (delivered) for March.

PET is used in plastic bottle production and in textiles.

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

($1 = €0.77)

By: Feliza Mirasol
+1 713 525 2653

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