The world market of PET is experiencing financial difficulties – Anti-dumping duties and investigations along with financial difficulties for several manufacturers have changed the world market of polyethylene terephthalate (PET) – World market PET financial difficulties - Arhive
World market PET financial difficulties World market PET financial difficulties World market PET financial difficulties World market PET financial difficulties World market PET financial difficulties World market PET financial difficulties World market PET financial difficulties
The world market of PET is experiencing financial difficulties
MOSCOW – Anti-dumping duties and investigations along with financial difficulties for several manufacturers have changed the world market of polyethylene terephthalate (PET) and led it to the beginning of restructuring, ICIS reports with reference to market participants.
On a global scale, difficult market conditions were complicated by Hurricane Harvey, which broke out at the end of August on the coast of the Gulf of Mexico. The hurricane temporarily affected the production of monoethylene glycol (MEG) and paraxylene in the US, which led to an increase in the prices of this raw material for PET and caused logistical delays.
As the consequences of Harvey go away, the PET market participants in the US and Latin America are also closely following developments related to the financial difficulties of the major PET manufacturer Mossi & Ghisolfi (M & G). M & G Group is the third largest PET producer in North America, and its financial difficulties have had a big impact on supply and demand in the region.
The possible solutions to M & G’s problems, as well as the implications for the PET market, remain unclear. However, PET supplies in Latin America have already worsened and are expected to continue until the M & G production plant plan appears. This has already led to an increase in prices for PET in Latin America, as well as in the United States. PET M & G’s capacities in the region include 350,000 tons per year in the US, 590,000 tons per year in Mexico and 460,000 tons per year in Brazil.
In addition, in August it became known about the financial difficulties of the supplier JBF RAK. JBF RAK, a subsidiary of JBF Industries, headquartered in India, operates a plant in Belgium with a capacity of 432,000 tons of PET per year. In August, it became known that the company is negotiating the sale of the plant.
Meanwhile, in China in mid-October, prices fell to levels lower than in other Asian markets. This decline in prices for Chinese PET compared to other Asian markets was due to the difficulties that the country faced when exporting to countries such as the United States and Japan, due to anti-dumping duties in these regions. The amount of anti-dumping duties on Chinese imports in the US and Japan ranges from 39.8% to 53%.
Earlier it was reported that domestic prices of polyethylene terephthalate (PET) in the European market remained stable last week amid a balanced market situation. Thus, domestic prices for PET bottles in Europe remained in the range EUR1 030-1 080 per tonne, FD Europe. At the same time, the demand for the material was low, albeit within the expectations of market players at this time of year.
According to the Price Review of ICIS-MRC , the price levels in the Russian PET market, in general, also remain stable.
mrcplast.ru
Author: Anna Larionova
Related Topics