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 Materials Suppliers Resin Pricing
Companies & Associations

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

Wittmann Battenfeld betting on big for future sales

April 24, 2015 12:34 pm ET

Five hundred visitors packed into MacroPower Days, about twice as many as Wittmann Battenfeld GmbH officials initially expected — proof, they...    More

Image

Plastics News Now: Ontario ditches paper for plastic

April 23, 2015 9:32 am ET

Ontario, Canada, moves to polymer-based birth certificates, Adidas tackles plastic ocean waste, and a year's worth of bloopers.    More

Image

Schaefer-Weaton focuses on recruiting, training talent

April 22, 2015 1:03 pm ET

Lori Schaefer-Weaton, the daughter of company founder Dick Smith, has taken the reins of Agri-Industrial Plastics Co. Schaefer-Weaton is 19 months...    More

Image

NPE reflects the pains of China's transitioning industry

April 21, 2015 6:00 am ET

More than 400 exhibitors came all the way from China to Orlando for NPE 2015, representing more than a fifth of total exhibitors. But the...    More

Image

Nylon 6/6 supplies might tighten as force majeure declared

April 20, 2015 1:37 pm ET

Invista declares force majeure on nylon 6/6 and feedstocks, and update on force majeure issues in Europe. Plus management changes at Star Thermoplasti...    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

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

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

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

September 15, 2015 - September 17, 2015Plastics Caps & Closures - September 2015

More Events