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, Materials Suppliers, Resin Pricing

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

New Hexcel plant will supply carbon fiber for Airbus A350 XWB

September 30, 2014 2:43 pm ET

Hexcel Corp. is investing $250 million on a new carbon fiber plant in France, with part of the production going into the future Airbus SAS A350 XWB.    More

Image

LyondellBasell CEO Gallogly to retire

September 30, 2014 3:00 pm ET

James Gallogly, CEO of Houston-based polyolefins producer LyondellBasell Industries NV, on Sept. 29 announced plans to retire in 2015.    More

Image

Asahi Kasei breaks ground on Alabama compounding plant

September 29, 2014 5:39 pm ET

Asahi Kasei Plastics North America will be able to solve two problems at once with a new compounding plant in Athens, Ala.    More

Image

DuPont shifting Teflon production in China

September 29, 2014 2:35 pm ET

DuPont Co. will spend more than $15 million to improve its fluoropolymer product offerings in China.    More

Image

Sale of PVC maker Oltchim still in limbo

September 29, 2014 10:25 am ET

Fresh attempts to privatize insolvent Romanian PVC producer Oltchim SA have met with new obstacles as the European Union questioned the Romanian gover...    More

Market Reports

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our industry analysis highlights macro industry trends and micro trends faced by companies that do business in Mexico. The report also provides key industry statistics and forecasts to anticipate future industry expansion.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events