23 May 2013 22:54 [Source: ICIS news]
NEW YORK (ICIS)--US polyethylene terephthalate (PET) prices are leaning heavily towards staying flat from April to May on the back of initial settlements in the upstream paraxylene (PX) May contract, market sources said today.
One producer rolled its PET prices in May and concluded some deals at that level. Another producer is leaning towards a rollover of its prices as well, but said it will still wait for PX to settle.
Several buyers also expect prices will be flat, though they have not confirmed that they concluded their PET deals for May yet.
A trader said the declining price trend in PET has bottomed out, and he does not expect to see further decreases this month.
April PET prices fell up to 6 cents/lb ($132/tonne, €103/tonne) to 83.50-88.50 cents/lb SBM (stretch blow moulding) DEL (delivered) from March levels, according to ICIS. Some sources concluded their April PET deals at a reduction of 5.0-5.5 cents/lb from March.
Price direction for PET throughout most of May has been unclear because of a lack of direction from upstream PX. Sources said during this week that initial settlements of PX were flat to slightly down.
It was not confirmed that PX has reached full settlement for May at this time. PX was stalled throughout most of this month because there was no clear direction from the PX Asian Contract Price (ACP), which was not settled for May. The PX ACP provides a basis for US contract negotiations.
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 = €0.78)
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