North American PET bottle resin prices drop 7 cents

By Frank Esposito
Senior Staff Reporter

Published: May 16, 2013 1:04 pm ET
Updated: May 16, 2013 1:05 pm ET

Related to this story

Topics Materials, Resin Pricing, Materials Suppliers

AKRON, OHIO — Lower demand and declining feedstock prices have helped send North American PET bottle resin prices down an average of 7 cents per pound since March 1.

The drop was split between 2 cents in March and 5 in April, according to market sources. Combined with a 2-cent increase that regional buyers saw in January or February, prices now are down a net of 5 cents so far in 2013. That equates to a drop of about 5 percent, based on prices for PET bottle resin shown on the Plastics News resin pricing chart.

By comparison, prices for that material had shown an increase of an average of 8 cents per pound — or almost 9 percent — for full-year 2012.

Colder-than-normal spring weather in the U.S. Midwest and East Coast served to drive down beverage consumption, including the carbonated soft drinks and bottled water that make up a big portion of North American PET demand. Ongoing lightweighting of PET bottles in a variety of markets also played a role in reducing PET demand in the first four months of the year, sources said.

In the first quarter of 2013, Global PET sales for Indorama Ventures Public Co. Ltd. grew 10 percent to almost $1.9 billion. But PET-related pretax profit at the Bangkok-based firm fell 13 percent to $59 million.

Indorama officials said in a news release that the firm’s first-quarter performance was about 5 percent below internal estimates, but that the outlook is improved for later in the year. Indorama last year announced plans to build a new billion-pound capacity PET plant in North America, but the firm has not settled on a location for the new plant. Indorama already operates PET plants in Decatur, Ala., and Asheboro, N.C.

The new Indorama plant will be part of about 3.5 billion pounds of new PET capacity that’s set to open in North America by 2016. The new capacity has been announced in spite of industry estimates that the regional market is oversupplied by almost 2 billion pounds — and in spite of a domestic PET demand growth rate that’s expected to be no higher than 2 percent in the next few years.

The new capacity announcements also have caused some in the industry to speculate that older capacity eventually will be shut down. Other markets around the world also are oversupplied with PET, resulting in global operating rates of less than 80 percent.


Comments

North American PET bottle resin prices drop 7 cents

By Frank Esposito
Senior Staff Reporter

Published: May 16, 2013 1:04 pm ET
Updated: May 16, 2013 1:05 pm ET

Post Your Comments


Back to story


More stories

Image

China's Shide Group, BASF unveil 'revolutionary' all-plastic window profile

April 23, 2014 9:10 pm ET

SHANGHAI — The PVC window profile market in Asia is expected to increase four-fold by 2025, and Chinese building products maker Dalian Shide...    More

Worker dies in fall at Formosa Texas plant

April 23, 2014 4:04 pm ET

A subcontractor died April 22 after falling 25 feet during routine cleaning operations at a Formosa Plastics Corp. USA facility in Point Comfort,...    More

Image

Milliken expanding SC plant for additional PP clarifying agent capacity

April 23, 2014 3:42 pm ET

American chemical company Milliken & Co. has announced plans for a major expansion in capacity for its Millad NX8000 clarifying agent for...    More

Clariant says Asia holds the key to growth

April 23, 2014 3:52 pm ET

Clariant AG is based in Switzerland, but its eyes are firmly focused further east.    More

Sale of Romanian PVC producer Oltchim assets postponed again

April 23, 2014 1:35 pm ET

The long anticipated privatization of insolvent Romanian PVC producer Oltchim has been postponed yet again, this time until mid-May.    More

Market Reports

Market Data Book - Rankings & Lists

A one-stop download of Plastic News' exclusive annual lists and processor rankings containing essential data including sales, employees, end markets, materials and more.
EXCLUSIVE EXCEL FEATURE: full mailing address details for available plant locations.

Learn more

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report provides analysis and discussions of economic and political conditions, market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as strategies being implemented by thermoformed packaging companies. In addition, there are reviews of 25 leading thermoformers in the packaging segment, assessing their growth initiatives and performance metrics over 10 years.

Learn more

Mold Making and Tooling Review and Outlook 2014 North America

This report provides in-depth analysis of the mold and toolmaking market for North America, including discussions of trends, opportunities, threats, the latest developments in production and labor and equipment trends impacting moldmakers.

Learn more

Upcoming Plastics News Events

May 6, 2014 - May 8, 2014Plastics in Medical Devices 2014

May 12, 2014 - May 12, 2014Plastics News Brazil Pharma Summit

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

February 3, 2015 - February 7, 2015Plastics News Executive Forum 2015

More Events