Polymerupdate.com reports that PET (polyethylene terephthalate) prices in Asia last week slipped, on the basis of a decline in MEG feedstock and TPA (terephthalic acid) prices coupled with faltering demand. With inquiries withdrawn, PET buyers began to demand price reductions, but sellers were reluctant to drop their offers although some did concede to the emerging bearish trend (for more information, go to www.polymerupdate.com).
A South Korean-based PET bottle-grade producer, when contacted, told Polymerupdate, Last week our offers were at the $1410/tonne to $1420/tonne FOB levels. This morning, we have revised these lower on reports that some regional sellers have priced their PET bottle grade rates at the $1380/tonne FOB Korea levels.
The source said PET producers real competition comes from traders, some of whom, in urgent need of liquidity, have sharply reduced their offers to levels as low as $1350/tonne.
In additional news supplied by Polymerupdate.com, Engro Polymer will invest $250 million to boost PVC production capacity. A Polymerupdate source in Pakistan, told the website that Engro hopes to increase capacity by 50,000 tonnes through backward integration to a 150,000 tonnes/yr facility by March 2009. The source indicated that with a 76% market share, Enpro is a market leader in PVC resin in Pakistan. Pakistani demand for PVC has been growing at an annual rate of 12%, with much lower per capita PVC consumption in Pakistan pointing to the potential for continuing expansion.