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

Asia to remain chemical giant but US shale will bring competition

July 23, 2014 1:00 pm ET

A new IHS Chemical report on global spending for chemical production predicts capacity additions will peak in 2014 at $120 billion and then will...    More

Image

DuPont quarterly sales drop, income rises

July 23, 2014 12:46 pm ET

DuPont Co.'s sales and net income experienced slight changes for the second quarter 2014, as operating earnings dropped to $1.17 per share in the...    More

Image

Celanese to expand production in Brazil

July 23, 2014 11:15 am ET

Celanese Corp., the Irving, Texas-based chemicals and specialty materials company, has announced that it will expand its manufacturing capabilities...    More

Image

DSM planning North American nylon plant

July 22, 2014 11:41 am ET

Materials firm Royal DSM NV plans to build a new nylon resin plant in North America, but no decision has been made on the plant's exact location.    More

China launches investments in Belarus

July 21, 2014 10:10 am ET

China is preparing to invest in a major bottle grade PET production project planned by the Belarus PET and polyester fibers producer Mogilevkhimvolokn...    More

Market Reports

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

Plastics Recycling Market Review & Outlook 2014

This special report from Plastics News examines the North American plastics recycling industry and provides insight into indicators that impact market viability, including Resin pricing trends for virgin and recycled market material and historical Resin production trends for post- consumer and industrial waste.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

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

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

More Events