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

Westlake adding ethylene capacity in Louisiana

October 23, 2014 9:54 pm ET

Westlake Chemical Corp. will add 250 million pounds of annual ethane-based ethylene capacity as part of a $330 million expansion project in Lake...    More

Image

PolyOne increases quarterly profits despite falling sales

October 23, 2014 4:55 pm ET

North American compounding leader PolyOne Corp. saw its third-quarter profit increase, even as sales fell vs. the year-ago period.    More

Image

Total picks new management following CEO's death in crash

October 23, 2014 11:03 am ET

Total SA has picked a new management team to oversee the company in the wake of a plane crash in Moscow that killed its chairman and CEO earlier this ...    More

Image

Report: Private equity companies may seek to buy Bayer MaterialScience

October 23, 2014 10:56 am ET

A number of investment groups are reported to be interested buying Bayer AG's MaterialScience operation, valued at around 10 billion euros ($12.6...    More

Image

Plastics lead Dow's quarterly growth

October 23, 2014 10:15 am ET

Dow Chemical Co. has announced its third quarter results for 2014 showing a 5 percent increase on the third quarter of 2013, rising to $14.4 billion f...    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

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 analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

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

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