04 July 2013 12:18 [Source: ICIS news]
LONDON (ICIS)--Spain-based Novapet's 30,000 tonne/year polyethylene terephthalate (PET) Plant 1 in Barbastro has restarted as planned and is running at around 60%, a company source said on Thursday.
It was originally due to ramp up to 40%, but this is now more likely to be the average rate over the year.
The smallest of Novapet's three lines went down in May.
Novapet’s 100,000 tonne/year speciality Plant 2 and 130,000 tonne/year Plant 3 operated at 75% in June, lower than normal for the time of year.
Demand for PET bottles is usually highest during the summer months, but the combination of cold weather and poor macroeconomic conditions resulted in disappointing sales.
However, the weather is now warming up, and production costs look set to increase slightly. An initial upstream paraxylene (PX) July contract price settled at €1,100/tonne ($1,429/tonne) FD (free delivered) NWE (northwest Europe) on Thursday, up €8/tonne compared with June.
With uncertainty over the future of La Seda de Barcelona (LSB), which recently filed for insolvency, and reduced output from other local production sites, Spanish suppliers are seeking increases for July PET.
Customers are targeting rollovers or a decrease.
Other parts of Europe are already seeing some downward pressure on prices.
June PET was agreed at €1,220-1,250/tonne FD Europe, according to ICIS data.
($1 = €0.77)
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