US March PET falls 0.5-1 cent/lb amid lower feedstock

03 April 2014 23:22 Source:ICIS News

HOUSTON (ICIS)--US polyethylene terephthalate (PET) market-based monthly negotiated prices for March were assessed lower by half a penny to a penny amid softer feedstock costs, sources said on Thursday.

March prices were assessed at 81.5-85.0 cents/lb SBM (stretch blow moulding) DEL (delivered) from 82.0-86.0 cents/lb SBM DEL in February.

Prices could trend flat in April. At least one producer said they would keep prices flat for April from March.

Other market sources were not able to comment on April pricing as many market players were attending the International Petrochemical Conference (IPC) hosted by the American Fuel & Petrochemical Manufacturers (AFPM) this week in San Antonio, Texas.

A market player saw a considerable increase in PET demand in February and March from the fourth quarter of 2013, as resin producers were stocking up on material ahead of the start of the beverage bottle-making season in the spring.

Several market sources concurred that the market improved quarter-to-quarter, saying it is fair to characterise the first quarter as having done better than the fourth quarter of 2013.

Meanwhile, contract pricing for feedstock purified terephthalic acid (PTA) was down in March, on the back of a reduced US contract price for upstream paraxylene (PX).

PET is used in plastic beverage bottle production and in textiles.

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

By Feliza Mirasol