Lithuania’s NEO Group raises PET operating rate, market still poor

28 November 2013 13:44  [Source: ICIS news]

LONDON (ICIS)--Lithuania’s Neo Group is increasing operating rates at its two 160,000 tonne/year units in Klaipeda after almost two months of running at reduced capacity, a company source said on Thursday.

Neo Group was running at 70% and for December we plan to increase to 80%,” the source said.

The earlier reduced rates came as a result of poor market conditions and technical issues that have since been resolved.

“Customers are coming back, they decided maybe this is the bottom. They are prebuying for next year…Margins are terrible,” the producer added.

ndorama's site at Workington in the UK is the latest victim of poor economics and is due to be mothballedbut dates have yet to be confirmed.

Meanwhile, at least three companies have expressed an interest in the purchase of all or part of La Seda de Barcelona (LSB), according to sources. LSB operates the Artenius PET plants and the upstream Industrias Quimicas Asociadas (IQA) ethylene oxide (EO) and ethylene glycol plants.

The price of PET in Europe dropped by as much as €70/tonne ($95/tonne) from October to early November, partly due to lower production costs and the threat of cheap imports. Over the course of November, however, PET prices stabilised in the low to mid €1,100s/tonne.

($1 = €0.74)

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By: Caroline Murray
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