Polyethylene Terephthalate (PET)

Polyethylene terephthalate (PET) exists both as an amorphous (transparent) and a semi-crystalline (opaque and white) thermoplastic, and can be made into either a resin or a film. The semi-crystalline PET has good strength, ductility, stiffness and hardness while the amorphous PET has better ductility. PET also has good processability and can be recycled for other applications such as polyester fibres.

PET first penetrated the carbonated soft drinks (CSD) market because of its lightweight and good barrier properties against oxygen and carbon dioxide. It is also strong and PET bottles are virtually unbreakable. More recently, it has been taking market share in the bottled water market due to its good clarity and not leaving any taste in the water. It has also found applications in more niche markets such as sports drinks and fruit juices. However, PET has yet to make any noticeable impact in the bottled beer market but a pre-coloured PET has been developed that meets the light barrier requirements for beer packaging.

Other applications for PET include thick-walled containers for cosmetic and personal care products as well as pharmaceuticals. PET film is utilised in electrical applications such as dielectric metal foil capacitors and for packaging.

In Asia, the market is 100% oversupplied and very fragmented, with several producers scattered in Taiwan, Korea, China, India and southeast Asia. Although Taiwanese and Korean suppliers remain the biggest producers in Asia, their lead is increasingly threatened by the Chinese producers.

Health and Safety

PET is not considered to be hazardous or flammable. In a spill situation, PET may be visually unpleasant but is not expected to cause any adverse environmental effects.

ICIS pricing quotes PET in Europe, Asia-Pacific, the USA and Latin America

Frequency:

PET and Intermediates (USA) published weekly on Fridays.

PET (Europe) and PET (Asia-Pacific) published weekly on Fridays.

PET (Latin America) published weekly on Tuesdays.

Polyethylene Terephthalate (EUROPE)

Weekly Price Assessments:

PET Bottle Grade Monthly Domestic Prices

• FD W.Europe (EUR/MT & conversion to USD/MT)
• FD E.Europe (GBP/MT & conversion to USD/MT)

PET Film Grade Monthly Domestic Prices

• FD W.Europe (EUR/MT & conversion to USD/MT)

PET Bottle Grade Spot Prices

• EXW Russia Rb/MT (conversion to EUR/MT)

PET Feedstock Prices

• Terephthalic Acid FD NWE Monthly Contract (EUR/MT & conversion to USD/MT)
• Mono Ethylene Glycol FD NWE Monthly (EUR/MT)

Polyethylene Terephthalate (ASIA-PACIFIC)

Weekly Price Assessments:

PET Fibre Grade Spot Prices

• CFR N.E.ASIA (USD/MT & conversion to US CTS/LB)
• CFR INDIA (USD/MT & conversion to US CTS/LB)
• FOB N.E.ASIA (USD/MT & conversion to US CTS/LB)

PET Bottle Grade Spot Prices

• FOB KOREA (USD/MT & conversion to US CTS/LB)
• FOB TAIWAN (USD/MT & conversion to US CTS/LB)
• FOB CHINA (USD/MT & conversion to US CTS/LB)
• FOB S.E.ASIA (USD/MT & conversion to US CTS/LB)
• FOB INDIA (USD/MT & conversion to US CTS/LB)

PET Film Grade Spot Prices (with effect from February 2006)

• FOB EAST ASIA (USD/MT & conversion to US CTS/LB)

PET Feedstock Prices

• PTA CFR CHINA MAIN PORT SPOT (USD/MT)
• MEG LIST PRICE:CFR ASIA monthly (USD/MT)
• MEG FOB N.E.ASIA SPOT (USD/MT)

PET and Intermediates (USA)

Weekly Price Assessments:

Terephthalic Acid Contract Prices

• DEL monthly (US CTS/LB & conversion to USD/MT)

PET Bottle Grade Contract Prices

• SBM DEL monthly (US CTS/LB & conversion to USD/MT)

PET Feedstock Prices

• Paraxylene DEL Monthly Contract (US CTS/LB

Polyethylene Terephthalate (LATIN AMERICA)

Weekly Price Assessments:

PET Bottle Grade Domestic Spot Prices

• ARGENTINA (DEL) (US CTS/LB & conversion to USD/MT)
• BRAZIL (DEL) (US CTS/LB & conversion to USD/MT)
• COLOMBIA (DEL) (US CTS/LB & conversion to USD/MT)
• MEXICO (DEL) (US CTS/LB & conversion to USD/MT)

PET Bottle Grade International Spot Prices

• ARGENTINA (FOB) (US CTS/LB & conversion to USD/MT)
• BRAZIL (FOB) (US CTS/LB & conversion to USD/MT)
• COLOMBIA (FOB) (US CTS/LB & conversion to USD/MT)
• CHILE (CFR) (US CTS/LB & conversion to USD/MT)
• MEXICO (FOB) (US CTS/LB & conversion to USD/MT)
• VENEZUELA (CFR) (US CTS/LB & conversion to USD/MT)

General Information:

Assessment window: Price assessments are based on information supplied by market participants through the week up to close of business on Tuesdays at 1800 hours in Houston for the Latin America report; and at 1800 hrs on Fridays in London, Singapore and Houston for the other regions.

Specification: Unless otherwise stated, ICIS pricing quotes prices for prime material or bottle-grade PET chips at 0.78-0.80 IV, for general mineral bottle applications

Timing: Cargoes loading or delivered four-six weeks forward from the date of publication.

Terms: 30-60 days after bill of lading date.

Standard cargo size: Small-sized parcels of 500-1,000 tonnes and medium-to-large-sized parcels of 1,000-2,000 tonnes

Assessment basis: The published ranges represent a combination of the following price indications: the deals concluded, bids and offers, buy and sell indications and notional discussions heard by the close of business on Friday, or Tuesdays for the Latin America report. Notional adjustments will be made to accurately reflect the levels at which business would probably take place by the close of business that week. Factors affecting price movements, including the supply and demand situation, plant operating rates, feedstock and derivative markets, cargo movements, and general sentiment, etc will also be taken into account. Where applicable there is product information, comments on up and downstream market developments and general market intelligence.

The US report includes prices of purified terephthalic acid (PTA). At the end of the commentary, the latest feedstock prices are also listed. The Latin American report has commentary on bottle-grade PET only. The Asian report is divided into two parts: one on fibre-grade PET chips and the other on bottle-grade PET chips. At the end of the commentary, the latest prices of feedstocks are also listed. The European report includes commentary on both bottle-grade and film-grade PET. European assessments reflect pre-discounted price levels. The west Europe quotes cover business in northwest Europe, such as the Netherlands, and in southwest Europe, including Spain. The east Europe reference is indicative of business in countries including Poland, Hungary, the Czech Republic, Lithuania and Bulgaria. The European report includes a formal Russian rouble denominated spot price assessment. These figures are quoted on an ex-works basis and include 18% VAT. The Euro quote is a conversion based on the day’s exchange rate noted at the end of the report.