PET resin prices drop slightly in July

By Frank Esposito
Senior Staff Reporter

Published: August 15, 2013 2:34 pm ET
Updated: August 15, 2013 2:38 pm ET

Image By: Plastics News The 1-cent decline in July follows a 7-cent decline that covered March and April.

Related to this story

Topics Materials, Resin Pricing, Materials Suppliers

North American PET bottle resin prices took a 1-cent dip in July, in a move that surprised some buyers and market watchers.

The 1-cent decline follows a 7-cent decline that covered March and April. The 1-cent move came as a bit of a surprise since it came in a summer month when beverage bottle demand normally is higher because of warmer temperatures. Earlier in 2013, colder-than-normal spring weather in parts of the United States drove down beverage consumption.

Regional bottle resin prices now are down a net of 6 cents so far in 2013. That works out to a drop of about 6 percent, based on prices shown on the Plastics News resin pricing chart.

Ongoing lightweighting of PET carbonated soft drink and water bottles also is affecting North American resin demand. Market analyst John Maddox said that the July price move — and most future PET price moves — are likely to be chalked up to feedstock issues, since regional resin demand growth should only be in the low single-digits.

Paraxylene feedstock prices were down, and prices for ethylene glycol feedstock were soft as well, according to Maddox, president of the SBA-CCI Inc. consulting firm in Jacksonville, Fla. Total U.S. PET growth for 2013 should check in at 2-3 percent, he said.

Most of that growth, however, will come from the film, sheet and fiber sectors, Maddox added, as growth in rigid packaging, including bottles, might be only one percent.

The major capacity news hitting the North American PET sector in the first half of 2013 was DAK America's mid-June announcement that the firm would close its plant in Wilmington, N.C. by September. The plant — known as the Cape Fear plant — employs 600 and has annual PET capacity of 440 million pounds.

"Cape Fear was a high-cost plant, according to DAK, so it was one of the plants we thought would be shut down first," Maddox said. "And there could be others in the region closing."

Market watchers had been saying for a while that closing down older capacity was needed to alleviate North American oversupply, which was estimated at 2 billion pounds. The move by Charlotte, N.C.-based DAK will help in that regard, but at the same time M&G Group and other suppliers have announced major capacity expansions elsewhere in the region.

Earlier this year, DAK's parent firm — Alpex SAB de CV of Monterrey, Mexico — bought the rights to 900 million pounds of new PET capacity at a plant that M&G will open in Corpus Christi, Texas, in 2016.


Comments

PET resin prices drop slightly in July

By Frank Esposito
Senior Staff Reporter

Published: August 15, 2013 2:34 pm ET
Updated: August 15, 2013 2:38 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 News Now: Arburg's 3-D printing machine hitting the market

October 23, 2014 9:03 am ET

Chrysler is hiding design elements in parts, Amcor teams up with Method for a molding and filling plant and Arburg's Freeformer attracts attention at ...    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